17 June 2010 08:35 [Source: ICIS news]
By Chow Bee Lin
SINGAPORE (ICIS news)--Asian and global traders are actively offering polyethylene (PE) for re-export from China - where demand is weak and inventory pressure is mounting - raising concerns that PE prices will continue downtrend, industry sources said on Thursday.
Most of the re-export offers were for Iranian material, Chinese traders said.
A significant increase in Iranian PE supply to ?xml:namespace>
LDPE film grade was last assessed at $1,280-1,350/tonne (€1,037-1,094) CFR (cost and freight) southeast Asia for the week ended 11 June, according to ICIS pricing. (Please see graph below)
The re-exports from
A key trader in east
A Taiwanese PE producer said it had bought a few hundred tonnes of Iranian LDPE from traders last week to supplement its supply to the domestic market.
“We’ve cut LDPE production in favour of ethylene vinyl acetate (EVA) which is giving us higher margins,” the producer said. The producer has the option to switch between LDPE and EVA at its swing plants.
The actual volume of Iranian PE available in
Materials stored at bonded warehouses have not cleared customs and hence are not reflected in the import statistics.
($1 = €0.81)
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