Sinopec north China cuts LLDPE price by 1.2%

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.

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 China were thin as buying interests were limited, some traders said.

“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 China as the market sentiment was still lukewarm.

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)

By: Jade Xu
+65 6789 8828

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