China’s PE rises by $50/tonne on firm crude, domestic PE

04 August 2010 09:24  [Source: ICIS news]

SINGAPORE (ICIS)--China’s polyethylene (PE) import prices have risen by at least $50/tonne (€38/tonne) this week on the back of hikes in international crude futures and domestic PE prices, industry sources said on Wednesday.

Chinese traders’ deals of imported general film grades high density PE (HDPE), linear low density PE (LLDPE) and low density PE (LDPE) were cited at $1,100-1,160/tonne CFR China, $1,160-1,180/tonne CFR China and up to $1,300/tonne CFR China for August arrival.

These were $50-100/tonne higher from last week’s transactions, they said.

Film grade HDPE, LLDPE and LDPE transactions in the week ended 30 July were at $1,030-1,060/tonne, $1,060-1,110/tonne and $1,170-1,250/tonne, all on a CFR China basis, according to ICIS data.

Locally produced film grades HDPE, LLDPE and LDPE were selling at yuan (CNY) 9,600/tonne ($1,418/tonne), CNY10,000/tonne, CNY11,200-11,300/tonne in eastern China, on an ex-warehouse basis, which were up to yuan (CNY) 600/tonne higher from last week, Chinese traders said.

Domestic prices started rising around two weeks ago when local major Sinopec started raising offer prices, in its efforts to protect margins, the Chinese traders said. The higher offers in turn triggered an uptrend in the retail market, they said.

The traditional high consumption season which typically stretches from September to early November also helped to support the market, they added.

($1 = €0.76 / $1 = CNY6.77)

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By: Chow Bee Lin
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