Credit offered by polymer traders to encourage buying amid low cashflow

16-Aug-11

In a bid to encourage buying amid low cash flows, polymer traders are seeking ways to spur trading activity. As credit and cashflow tightens in China, sellers are increasingly agreeing to credit terms of up to 90 days, as per Platts. Polymers are generally sold on a LC at sight basis, where sellers are able to collect their money when cargoes are delivered to buyers. But there has been a growing trend for traders to give in to buyer requests for LC 90 days. Market participants say the extended credit is a win-win situation for both buyers and sellers, as the Yuan is expected to continue rising against the US dollar.