Transactions for import LLDPE Film C4 between June 8 to June 12 on LC at sight, CIF China Main Port basis
Description: *Offers for August Shipment- Middle East origin $750-820/ton
- Southeast Asia origin $855-860/ton
- Southern Africa origin $755/ton
Comments by market players on LLDPE Film C4 market as follows:
“Today, our offers for import LLDPE Film C4 cargoes of Middle East origin remain stable from last week, at $750-760/ton on LC at sight, CIF China Main Port basis. At the moment, buyers began to show stiff resistance toward high prices, yet demand is still ongoing,” a Chinese trader reported on Monday, June 8.
On June 8, another trader informed SSESSMENTS.COM on receiving fresh offers from a Thai PE producer. “Particularly for LLDPE Film C4 cargoes, we received offers from a Thai PE producer at $855/ton on LC at sight, CIF China Main Port basis, or $20/ton higher than last week’s level. At such a level, we did not think any buyers would be interested in taking their cargoes as it is deemed too high. Besides, the shipment will be in August and most converters now prefer prompt delivery cargoes rather than forward basis taking into account many uncertainties in the market.”
“This week, we only received offers for HDPE Film cargoes from a Thai PE producer. However, the producer opens a tender for off-grade LLDPE Film C4 but we are not interested. This week, buying sentiment in the domestic market is considered bearish. Downstream players are cautious as futures prices showed no significant movement. We think import offers are on an upward trend as supported by the uptick demand in other countries coupled with high feedstock prices. Meanwhile, in the local market, the offers are also quite firm as buoyed by the low inventory level of the local producers,” said a Chinese trader contacted by SSESSMENTS.COM on June 9.
“This week, offers for LLDPE Film C4 from the leading Saudi polyolefins producer surfaced in the China market with an increase of $10/ton on a weekly comparison, available at $810/ton on LC at sight, CIF China Main Port basis. However, demand in the domestic market is rather slow this week; the current offer level is deemed too high and considered unworkable by buyers,” a global trading house said.
On June 11, SSESSMENTS.COM’s team talked with a source from the leading Saudi polyolefins producer and the source said, “We have increased this week’s offers for PE across all grades to the China market by $10/ton from a week earlier. The offers are not firm and we provided room for negotiation. For LLDPE Film C4, our sell idea is at $780/ton on LC at sight, CIF China Main Port basis, or $30/ton lower than the initial offer level.”
“The current import offers are mostly on an uptrend but we did not remember the exact price changes. We notice that import PE offers of Thailand origin are pretty high as the allocation is limited; hence, we did not conclude deals with the Thai producer. For Middle Eastern cargoes, the number of deals is limited and most deals were concluded at the low-end level of the price range. This week, imported US cargoes have gradually arrived in the China market; the volume is still normal, but by the end of July, all cargoes are expected to arrive in China ports. By then, the cargoes may affect the market situation. Speaking of demand, buyers currently on a wait-and-see stance to gauge the price direction and we think buyers will start to proceed with more procurement next week. In terms of prices, we believe that import PE prices will remain firm onward,” a trader based in China stated to SSESSMENTS.COM.
“We purchased import LLDPE Film C4 cargoes of South Africa origin at $755/ton on LC at sight, CIF China Main Port basis. Recently, most import cargoes offered at high prices while most converters deemed that high prices are not workable considering the slow sales for finished products. As such, most of them prefer low-end materials to avoid any losses,” as commented by a Chinese trader.
Tags: Asia Pacific,China,English,NEA,News,PE
Published on June 15, 2020 10:57 AM (GMT+8)Last Updated on June 15, 2020 10:57 AM (GMT+8)
