North China LLDPE hits new high, jumps CNY350/t

06 March 2008 07:05  [Source: ICIS news]

SHANGHAI (ICIS news)--North China linear low density polyethylene (LLDPE) film, jumped yuan (CNY) 350/tonne ($49/tonne) on Thursday after registering a CNY150/tonne rise last week on continued bullish demand from agriculture film makers and tight supply, market sources said on Thursday.

Prices were now pegged at a record high of CNY13,850-13,900/tonne EXWH (ex-warehouse), they added.

Prices have risen by CNY550/tonne since the end of the Chinese New Year holidays as north China-based agriculture film factories, the main downstream LLDPE users, increased production and sales during their peak March season, traders said.

“Currently, LLDPE film prices in north China are the highest in the country,” one trader added.

“We could not get enough stocks from resin producers,” a trader said, adding that resources were limited as local resin producers were controlling sales.

“Transactions turned thinner after we lifted our offers,” some distributors said, adding that the current bullish market was not sustainable as many plastic processors were reluctant to buy and were using existing inventories.

“Although we were at a seasonal peak of production, we could hardly bear the high resin prices,” agriculture film producers said, and some producers even intend to reduce operation rates to avoid losses.

($1=CNY7.10)

By: Longston Li
+65 6780 4359

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