Import LDPE, LLDPE prices almost back at par with ethylene in China
Oct. 15, 2018
According to data from ChemOrbis Price Index, import LDPE and LLDPE film prices in China are currently trading close to par with spot ethylene, a situation that last occurred in around mid-May of this year.
Spot ethylene prices on CFR Far East Asia basis traded with an average premium of around $185/ton over LDPE and LLDPE film prices on CFR China basis during the May-September period. However, this unbalanced premium has recently decreased to around $5-10/ton as ethylene prices in Asia have witnessed sizeable decreases since the end of August, hitting a 15-month low recently.
Data suggest that the weekly average of spot ethylene prices on CFR Far East Asia basis has recorded a cumulative decrease of around $250/ton since the downward trend kicked off in around end-August.
In the meantime, China’s import LDPE and LLDPE film markets mostly hovered around their pre-National Day holiday levels last week. This was despite the fact that major domestic producers intended to increase their offers due to higher futures and lower-than-expected supplies.
A major Saudi producer announced its October LDPE prices to China with a $10/ton decrease while applying rollovers or $10/ton hikes on LLDPE. Traders noted that demand towards LLDPE was gradually improving thanks to the agricultural season. “However, buyers are still hesitant to make large-scale purchases from the import market given their ongoing concerns about currency depreciations amid the US-China trade war,” a player commented.