12 April 2007 12:37 [Source: ICIS news]
SHANGHAI (ICIS news)--Sinopec cut linear low density (LLDPE) prices by 1.2% in north China due to inventory pressure and weak demand, traders, distributors and buyers said on Thursday.?xml:namespace>
The Chinese petrochemical major reduced the LLDPE price by yuan (CNY) 150/tonne ($19.4/tonne) to CNY 11,950-12,050/tonne, they added.
“We decreased the ex-works price due to fears of inventory accumulation during Labour Holiday week [in early May] and that demand for mulch film would weaken from the Chingming Festival [in early April],” a sales manager from Sinopec's north China sales branch said.
Despite the cuts, LLDPE trades in north ?xml:namespace>
“We lost some orders from converters after local producers’ price drop this morning. We don’t know how to offer and how much to offer,” one trader said.
Only a few deals were done at CNY 12,050-12,150/tonne ex-warehouse (EXWH) for LLDPE in north
Some converters say they would increase their mulch film production in mid-to-late April. “We have cut our mulch film operating rate to 40% from 70-80% currently due to reducing orders,” one film maker said.
($1 = CNY7.73)
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