Sellers raise offers for HDPE in Asia as demand from China picks up

20-Nov-08

Demand from China has started showing signs of improvement as inventory levels with buyers dip, and also on optimistic market outlook on news of the US$586 bln economic stimulus package announced by the Chinese Government to boost its floundering economy. After successful conclusion of deals at US$775/MT CFR China, HDPE offers firmed by almost twenty dollars. Since sellers have liquidated several cargoes last week and are currently not pressed by high inventory levels, they do not seem to be willing to down adjust offers and have in fact deferred quotes. Improvement in demand will also see raising of run rates at several plants across the region, that had been lowered.