Linear low density polyethylene price, on a CFR Far East Asia basis, rose by US$53.8/mt (4.5% ) month on month to average at US$,254.73/mt in July, mainly on higher crude oil and ethylene prices, Platts data showed. The rise in the CFR Far East Asia high density polyethylene price over the same period was less, at 2.4%, with the average for July at US$1298.68/mt. Low density polyethylene gained US$27.70/mt (2.3%) to average at US$1241.36/mt in July.
Macroeconomic sentiment improved over July, boosting crude values -- September ICE Brent crude futures were US$105.60/barrel at the Asian close on July 31, up by US$12.59 or 13.5% from the last trading day of June. FOB North Asia ethylene price gained US$155.64/mt or 16.9% month on month to average at US$1076.50/mt, helping to raise PE prices.
These increases have come after a period of stable market activity in June, when plastics converters preferred to minimize buying resins due to weak downstream demand and restocking was carried out just to fulfill orders.