LDPE as well as LLDPE markets gained strength in Asia as buyers have returned to the markets. Demand revived in China, as finding themselves with low inventory levels, many buyers came back to the markets.
In view of reviving demand, sellers have added about 50-60 dollars to offers, elevating them to US$890/MT CFR China, whilst CFR China buying intentions were optimistic at US$835/MT. In fact, market shows signs of revival as South Korean cargoes were sold at US$875/MT CFR SE Asia.
After successful conclusion of deals at US$775/MT CFR China, HDPE offers firmed by almost twenty dollars. Since sellers have liquidated several cargoes last week and are currently not pressed by high inventory levels, they do not seem to be willing to down adjust offers and have in fact deferred quotes.
As HDPE prices pick up, CFR China LLDPE prices have zoomed up by hundred dollars to US$800/MT. After cargoes from South Korea for November shipment were disposed at US$820/MT CFR SE Asia, offers were upadjusted by about fifty dollars.