China’s PE market may bottom out - supplier

17 April 2008 19:12  [Source: ICIS news]

SHANGHAI (ICIS news)--China’s polyethylene (PE) market may bottom out soon after going through a downward correction in the last four to six weeks, a source at Honam Petrochemical said on Thursday.

“The market needs to correct itself as prices have been rising consistently for months, but the correction is a short-term one,” the source said on the sidelines of ChinaPlas, an annual plastics and rubber exhibition that runs from Thursday to Sunday.

“Prices started weakening in March but they are expected to stabilise and rise again shortly,” he said.

Record high crude prices, coupled with high ethylene feedstock values, were factors expected to stamp the PE price fall, and push prices higher for May shipment, he added.

Film-grade high density polyethylene (HDPE) prices fell by $20/tonne (€12.60) in the last two weeks to hover around $1,590-1,610/tonne CFR (cost and freight) China in the week ended 11 April, according to global chemical market intelligence service ICIS pricing.

Ethylene prices rose $80-100/tonne last week to $1,350-1,380/tonne CFR northeast Asia on the back of tight supply, according ICIS pricing.

Crude futures soared to new record highs on Thursday morning in Asia with NYMEX light sweet crude crossing $115/bbl.

($1 = €0.63)

For more on polyethylene visit ICIS Chemical Intelligence

By: Chow Bee Lin
+65 6780 4359

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