Asian producers hike February shipment PE offers to China

07-Jan-10

February shipment offers for PE to China have been hiked by Asian producers, indicating a US$80-90/ton increase for LDPE film, a US$70-80/ton increase for HDPE film and US$20-65/ton increase for LLDPE c4 film as per Chemorbis. A previous deal for January was concluded for LDPE film at US$1580/ton CFR China, cash basis by a producer from the Middle East. From Thailand, February shipment HDPE film was offered about 75 dollars higher at US$1340-1350/ton CFR China main port, subject to 6.5% customs duty, cash basis; while LLDPE c4 film was offered about 60 dollars higher at US$1475/ton on similar terms, same port. Singaporean LLDPE c4 film is about 30 dollars higher at US$1410/ton with the same terms on limited allocation for the month and about 20 dollars higher than last time from South Korea at US$1470/ton on CFR China main port, subject to 6.5% customs duty, cash basis. Faced with limited allocations, producer plans to insist on their offer levels for the short term despite strong resistance from buyers. Meanwhile, domestic market sentiment continue to be strong in China as the local producers announce persistent increases on the back of the higher energy and distribution market prices along with insufficient stock levels in the local market.