China, a key player in the world economy has announced a US$586 bln economic stimulus package to boost its floundering economy. The sentiments in polyethylene markets have been mixed.
After successful conclusion of CFR China deals at US$775/MT, HDPE prices firmed by about twenty dollars, despite availability of cargoes lower than US$750/MT. As sentiments become firmer, buying intentions elevate uptil US$700/MT.
Quiet demand due to the cyclical nature of demand for LDPE as well as LLDPE, have depressed offers. CFR China offers dipped to US$800-840/MT for LDPE and to US$705-750/MT for LLDPE. Deals were concluded at levels of US$800/MT for LDPE and US$640/MT for LLDPE.
Since HDPE markets have revived, LDPE prices, in all likelihood, may have bottomed out, coupled with restricted supply in the region due to production cuts by major producers.