LDPE and LLDPE prices spike despite stagnant ethylene prices

08-Dec-08

CFR Asia buying intentions continue to be pegged at US$400/MT, even as sellers are hiking their offers to US$450-500 triggered by limited avails due to reduced run rates by key producers. Despite restricted supplies, sellers are finding it difficult to find takers for ethylene at higher levels, and have abstained from quoting firm offers. As a result of this wait and watch policy adopted by both buyers and sellers, hardly any new deals have been concluded, despite rising LDPE and LLDPE prices. Limited supplies in the region have pushed up prices in the continent. After successful conclusion of CFR deals for December shipment of LDPE at US$870 and then at US$900/MT, sellers hiked offers above US$900/MT. Improved demand from China amid rising domestic prices has pushed LLDPE prices up by about fifty dollars to US$835/MT CFR China. After successful conclusion of deals at these levels and increasing domestic prices in China, offers from South Korea were hiked by over sixty dollars.