Domestic Polyethylene prices soften in China despite firm ethylene prices

19-Jan-10

Domestic producers have lowered their PE prices in China, especially in the LLDPE c4 film market at the beginning of the week, as per Chemorbis. Decreases of CNY200-300/ton (US$30-43/ton) can be attributed to the softening market sentiment along with lower energy and LLDPE futures prices. Interestingly, the weakening in the LLDPE c4 film market has also started to spill over to other PE markets including LDPE and HDPE film. However, the recent decreases mainly occurred within the overall price range as the locally held LLDPE c4 film prices were reported at EGP11600-12150/ton on ex-warehouse China, cash inc VAT basis, US$1698-1779/ton without VAT. The range is CNY50/ton (US$7/ton) lower at the high end but CNY100/ton ($14/ton) higher at the low end on a week over week basis. Domestic producers elected to cut their offer levels despite higher ethylene costs in Asia. Spot ethylene prices were reported at US$1340-1350/ton on CFR NEA basis while they are at US$1400-1410/ton on CFR SEA basis. These figures show US$90-100/ton increases on a week over week basis.