Polyethylene prices plummet in Asia on meek Chinese demand and weak input costs

19-Sep-08

Ethylene markets of Asia have weakened to levels less than US$1100/mt CFR Asia as they witness a withdrawal in buying interest. Buyers continue to abstain from deal conclusion on deficient demand from downstream polyethylene markets. As feedstock ethylene dropped, LLDPE offers from Taiwan and South Korea fell sharply this week to US$1575/MT for September shipment. As demand from China continues to be lackluster, buying interest has been heard as low as US$1500/MT CFR China. For HDPE offers from Thailand that were down to US$1540/MT CFR China deals were concluded about 20-30 dollars lower. Earlier, muted demand from China as well as bearish HDPE markets doused LLDPE offers to US$1675/MT in Asia in the week of September 15, 2008.