Production cuts implemented by Chinese producers did help domestic prices to rebound, but failed to elevate the mood in HDPE markets of Asia. Demand from China continues to be lethargic, compelling several Asian suppliers to drop HDPE offers. CFR China HDPE offers from Thailand and Singapore have been cut to US$1750/MT and their South Korean counterparts quoting twenty dollars lower, but were met with resistance from buyers whose interest continues to be pegged fifty dollars lower. Markets may see some revitalization early next month on a supply cut caused by a planned 3 week annual maintenance shutdown at Formosa's 350,000 tpa HDPE plant.
Unenthusiastic demand from China continues to dampen market sentiments for LLDPE. Sellers of LLDPE have dropped September shipment offers by over fifty dollars. As ethylene costs plummet, while typical LLDPE offers in Asia have retreated to US$1750/MT CFR China, buyers are targeting a price fifty dollars lower.
Generally damp market outlook for PE, has succeeded in bringing down LDPE prices, with CFR China offers being down adjusted to US$1880-1910/MT.
25-Aug-08 
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