Comments by market players on HDPE Film market as follows:
A global trading house contacted by SSESSMENTS.COM on June 23 unveiled, “Offers for HDPE Film from the leading Saudi polyolefins producer have increased by $50/ton as compared to last week’s level. Similarly, during the same time frame, Qatari HDPE Film has also increased by $30/ton, at $880/ton on LC at sight, CIF China main port basis. However, buyers were showing a cold response towards the high-end import prices.”
An upward price adjustment also reported from another Middle Eastern PE producer, “Offers for HDPE Film from one of the Middle Eastern PE producers for July shipment have increased by $100/ton as compared to the offers for June shipment. The producer is having a tight supply at the moment. We predicted that the allocation to the China market is only 20%-30% from the normal volume, as the producer seems to divert the allocation to the Southeast Asia market on the back of better profit margin. Buyers were giving a mediocre response towards the significant upward price adjustment. Customers are still buying but in a small volume. Most converters prefer to wait on the side-line as market talks have it that 30,000 tons Iranian PE cargoes will arrive next month. If the Iranian cargoes arrive at the same time with Middle Eastern cargoes, the supply would be abundant. Initially, Iranian PE cargoes were supposed to arrive in May. However, there was a delay of two months. At the moment, there are four to five vessels moving to Asia, including China,” stated a Chinese trader.
Another Chinese trader stated that the delayed arrival of Iranian PE cargoes have supported local HDPE Film prices, “On a weekly comparison, local HDPE Film prices have increased between CNY50-100/ton ($7-14/ton). The delay on Iranian cargoes arrival is the major ground of the upward price adjustment. Actually, it is just a delay on dock up at the destination ports. At least there are three vessels waiting to dock up at China Port at the moment. However, we cannot estimate for how long the vessels have to wait.”
A Thai PE producer informed SSESSMENTS.COM, “We decided to increase the offers for export HDPE Film to China market between $20-30/ton as compared to last week. We admit that it is not easy to conclude the deals. However, we still managed to secure some deals. Seems like local PE prices in the China market are firm at the moment, since the inventory at two of the leading Chinese polyolefins producers is at the low level.”
On the last working day before the Dragon Boat Festival, a trader commented, “Well indeed, import PE prices are on the high note. However, since this week only has three working days in a week, transactions are scarce as people are already in a holiday mood. We also heard about the delayed arrival of Iranian cargoes. However, we do not think it is a big concern in the near term as the Chinese authority should be able to find a solution on the back of US-Iran conflict in order to allow the vessels to dock in China Port.”
Transaction for import HDPE Film between June 22 to June 26 on LC at sight, CIF China Main Port basis
Tags: Asia Pacific,China,English,NEA,News,PE
Published on June 29, 2020 4:45 PM (GMT+8)
