April PE offers indicate rollovers to decreases in China’s import market

19-Mar-10

In China, April PE offers from overseas producers indicate rollovers to decreases for the next month. As per Chemorbis, a major Taiwanese producer elected to keep LLDPE c4 film and HDPE film prices at March levels at US$1430/ton and US$1370/ton, respectively, on CFR China main port, subject to 6.5% customs duty, cash basis. However, the producer admits facing difficulties when trying to conclude sales at these prices, likely to lead to reduced offer levels in the days ahead to generate some buying interest. A Middle Eastern producer elected to cut their LDPE film offers significantly by US$100/ton compared to their most recent March done deal level at US$1520/ton on CFR China main port, subject to 6.5% customs duty, cash basis. Meanwhile, LDPE injection prices are US$60/ton down from March at US$1650/ton with the same terms. The producer continues to see slow demand despite their large decreases. Middle Eastern HDPE film and Singaporean LLDPE c4 film for April offer levels indicate US$20/ton decreases over their most recent March offers. The producer points to the poor demand and the decreases witnessed in the local market for their price cut. Now, their HDPE film offers stand at US$1350/ton on CFR China main port, subject to 6.5% customs duty cash basis for the Middle Eastern materials while their LLDPE c4 film offers are at US$1430/ton on CFR China main port, cash basis for the Singaporean material. The producer complains that they still meet resistance even from their regular customers.