LDPE film prices falling faster than other PE products in Asia, Europe

Over the past few weeks, LDPE film prices have been falling faster than prices for other PE products in Asia as well as Europe as per ChemOrbis. The impact of weaker demand has fallen more heavily on LDPE film prices than on other PE products as LDPE film prices are still trading well above their theoretical production costs based on spot ethylene prices and therefore still have some room to move down. Spot HDPE and LLDPE film prices are standing closer to producers’ theoretical cost levels. Relatively healthy supply levels for LDPE film were cited as another factor weighing down prices. According to data from ChemOrbis Price Index, spot LDPE film prices on a CFR China, cash basis have declined by US$80-120/ton since the start of June. Over the same period, import LLDPE film prices have shed US$40/ton, while import HDPE film prices have declined by US$20-40/ton. In the domestic market, LDPE film prices on an ex-warehouse China, cash equivalent basis losing CNY450/ton (US$70/ton) on both ends of the range since the start of the month while domestic LLDPE film prices have dropped CNY250/ton (US$39/ton) on the upper end of the range while gaining CNY50/ton (US$8/ton) on the lower end of the range, and domestic HDPE film prices have dropped by CNY100/ton (US$15/ton) on both ends of the overall range. In Southeast Asia, import LDPE film prices have lost US$75-120/ton from the beginning of this month while import HDPE film prices have declined by US$50-70/ton and import LLDPE film prices have eroded by US$50-135/ton. A distributor in Vietnam reported to have received import LDPE film from several producers with decreases of US$50-100/ton when compared with the producers’ most recent offer levels, adding that they down-adjusted their LDPE film offers to the local market by US$49/ton in response to softening regional trends. In Malaysia, domestic producers have implemented cumulative declines of MYR740/ton (US$243/ton) on their LDPE prices for the month of June while implementing smaller cumulative decreases of MYR460-480/ton (US$151-158/ton) for HDPE for the month. In Italy, LDPE prices have also been losing ground more rapidly than other PE products over the past month. Spot LDPE film prices on an FD North Italy, 60/90 days deferred payment basis have declined by €90-100/ton since the start of this month whereas spot prices for HDPE film and blow moulding have posted relatively smaller declines of €50-70/ton. A converter reported to have received an offer for Middle Eastern LDPE film at such an attractive price this week that they are hesitant to accept this material as they are suspicious about the quality. Widespread speculation that the July ethylene contract will settle lower in Europe has put pressure on sellers to reduce their prices as has the availability of competitively priced LDPE imports in nearby Mediterranean countries such as Egypt and Turkey.
  More News  Post Your Comment
{{comment.Name}} made a post.




There are no comments to display. Be the first one to comment!


Name Required.


Email Id Required.

Email Id Not Valid.


Mobile Required.

Email ID and Mobile Number are kept private and will not be shown publicly.

Message Required.

Click to Change image  Refresh Captcha