Europe PE sold to China as demand revives after holidays

12 October 2009 12:40  [Source: ICIS news]

Europe PE heads for China as demand picks upLONDON (ICIS news)--The revival of polyethylene (PE) buying interest from China on Monday, as holidays ended, led to business being secured from Europe, sources said.

“We have just sold big parcels to China,” said a major European PE producer.

Both buyer and seller confirmed a 2,000 tonne parcel of low density PE (LDPE) general purpose at $1,180/tonne (€802/tonne) CFR (cost and freight) China Main Port (CMP). The seller also reported a sale of 4,000 tonnes of coating grade at an average of $1,250/tonne CFR CMP. The price was consistent with other offers in the region.

Last week, selling indications for Asian general film grade LDPE were at $1,190-1,200/tonne CFR China for October shipment. Linear low density PE (LLDPE) from Taiwan and Japan was sold at $1,120-1,150/tonne CFR China for October shipment. LLDPE from Europe was offered at $1,150/tonne CFR CMP.

LDPE net prices in Europe for prompt delivery were still at €950-970/tonne FD (free delivered) NWE (northwest Europe). LLDPE was more freely available and price ideas were slightly below those for LDPE.

Buying interest picked up in China on Friday when the market reopened following an eight-day national holiday, although transaction prices were as much as $45/tonne lower than those before the holidays.

“We have factored a lower ethylene price into our business,” said the European producer, “but new sales will be at an increase.”

($1 = €0.68)

Chow Bee Lin contributed to this story
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