Spot LLDPE film prices in China are close to reaching par with HDPE film prices once again following two weeks of strong gains, as per ChemOrbis. HDPE prices have been trading at a premium over LLDPE film in China since the end of May as comparatively better demand for HDPE pushed the premium carried by HDPE film over LLDPE film as high as US$65/ton in the month of June. LLDPE demand has picked up recently, as buyers begin building up some stocks ahead of the anticipated high season in the agricultural film sector which usually begins in August. Higher LLDPE futures prices as well as supply concerns stemming from several scheduled plant shutdowns inside China over the next few months have also contributed to the recent rally in LLDPE film prices.
According to data from ChemOrbis Price Index, spot LLDPE film prices on a CFR China, cash basis have risen by US$80-110/ton over the past two weeks while HDPE film prices have registered relatively smaller increases of US$40-70/ton over the same time period. Players predict that PE prices will remain firm over the near term as the demand outlook for LLDPE film remains optimistic heading into the agricultural film season. LLDPE is likely to continue to gain ground at a faster rate than HDPE and be at par with HDPE film prices or even return to carrying a premium over HDPE film prices. LLDPE film traded at a premium over HDPE for the first five months of the year.