Transaction for import LLDPE Film C4 between June 1 to June 5 on LC at sight, CIF China Main Port basis
- Indian Subcontinent origin $740/ton
- Middle East origin $740-770/ton
- Southeast Asia origin $835/ton
Comments by market players on LLDPE Film C4 market as follows:
On June 1, a Chinese trader contacted by SSESSMENTS.COM commented, “Last week, some Middle Eastern PE producers increased the offers for LLDPE Film C4 by $20/ton. However, due to the depreciation of Chinese Yuan towards the U.S Dollar, traders lost interest in import cargoes. This morning, local PE producers increased the offers between CNY50-100/ton ($7-14). Following the increases from the local producers, we are planning to adjust up the offers for import cargoes as well.”
A trader based in Shanghai stated, “Offers for local LLDPE Film C4 are mostly stable this week as the LLDPE Film C4 market is more volatile compared to HDPE Film. We can say that in the last two weeks, China PE market is more stable as compared to three weeks ago. However, customers are only showing a good buying sentiment for prompt delivery cargoes, especially for the cargoes that are already available at the bonded warehouses at the port. Buyers are only willing to take the materials for early June shipment and showing less interest for late June shipment. Customers are cautious since July-August is the traditional low season for PE in the China market. Hence, they prefer to keep lean inventory.”
On June 3, a Thai PE producer announced export offers to the China market for late July or early August shipment. “Taking into account the increases in crude oil prices and the uptrend in China local market, we decided to increase the offers for LLDPE Film C4 by $35/ton as compared to a fortnight ago. We are facing difficulties in selling the materials right now. We are afraid that it will be tougher in July and August since it is the traditional low season for PE in the China market.”
“Import LLDPE Film C4 of Saudi origin increased by $30/ton compared to a month ago. The Middle Eastern PE producer made an upward price adjustment as there is no inventory pressure on their end, as well as triggered by the firmer feedstock prices. Middle Eastern PE producers just came back from the Eid Al-Fitr holiday and just resumed the production activities. As such, they do not aggressively move the materials,” said another Chinese trader.
A Chinese trader commented about import materials from Indonesia, “The leading Indonesian polyolefins producer is not actively offering to the export market these days since they have sold a lot of allocation to China market in April. At the moment, the producer is in short of materials and does not have quantity for the spot market. They are focusing on clearing the backlogs. In the China market, buyers are scared to take import cargoes as they are anticipating U.S cargoes in a big volume to arrive in the near time.”
On June 5, a local trader summarized the local PE price movements throughout the week, “At the beginning of the week, local PE prices were hiking supported by the increases in the futures market as well as firm prices from the local producers’ end. During this time, local PE prices increased between CNY100-200/ton ($7-14/ton) as compared to a week earlier. However, after the price increment, buyers showed a stiff resistance. Hence, starting from Wednesday afternoon, local PE prices in the market retreated and adjusted down between CNY100-200/ton ($7-14/ton) compared to a day earlier. To date, converters are showing a cold response towards the high-end prices.”
Tags: Asia Pacific,China,English,NEA,News,PE
Published on June 8, 2020 10:34 AM (GMT+8)Last Updated on June 8, 2020 10:34 AM (GMT+8)
