01 September 2010 09:11 [Source: ICIS news]
By Chow Bee Lin
SINGAPORE (ICIS)--China’s polyethylene (PE) import prices may remain stable or fluctuate within $10-20/tonne range for at least until the end of September as the impact of weak downstream demand is off-set by tighter import supply, industry sources said on Wednesday.
Film grade low density PE (LDPE) and linear LDPE were assessed at $1,320-1,400/tonne (€1,043-1,106/tonne) CFR (cost and freight) China, and $1,170-1,210/tonne CFR China, respectively, for the week ended 27 August, $10-20/tonne higher from the previous week, according to ICIS.
Film grade high density PE (HDPE) was assessed at 1,120-1,170/tonne CFR China for the same week, unchanged from the previous week, ICIS data shows.
Downstream demand had been weak as many plastics processors had to shut their factories for maintenance, as part of the country’s move towards reducing its carbon emission target, Chinese traders said.
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Despite the weak demand, PE import prices had remained largely stable in the past two weeks as most suppliers from the Middle East and
The tight supply was most acutely felt in the LDPE sector and the shortage was caused by a lack of capacity additions in the Middle East and
The shortage of LDPE supply was exacerbated by scheduled and unplanned maintenance shutdown of plants in
The scheduled maintenance of South Korean producers such as Honam Petrochemical in September and the unexpected shutdown of ExxonMobil’s plant in
“The tight LLDPE import supply is not having as much impact on China’s import prices as it used to because Chinese buyers can fall back on local supply. But the tight supply did prevent the import prices from falling,” said a second trader in east
Downstream plastic packaging and agricultural film processors were expected to ramp up production when they return from a week-long national day holiday due from 1 October, as they prepare to meet the year-end local and export demand, Chinese traders.
“The restriction on electricity consumption and factory maintenance aimed at reducing carbon emission should be over by then,” said a trader in south
($1 = €0.79)
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