China PE import prices gain $40-70/tonne on strong crude

12 October 2010 09:17  [Source: ICIS news]

SINGAPORE (ICIS)--China’s polyethylene (PE) prices have risen further this week, with different PE film grades registering increases of $40-70/tonne (€29-50/tonne), as strong crude values above $81/bbl boosted buyer confidence, local industry sources said on Tuesday.

Different PE film grades were assessed at $1,160-1,480/tonne CFR (cost and freight) China for the week ended 8 October, $20-50/tonne higher from the preceding week, according to ICIS data.

Several traders said it was easy to find buyers for C4 linear low density PE (LLDPE) at $1,270-1,300/tonne CFR China this week for prompt lifting at the bonded warehouse. These were $40-50/tonne higher from last week’s discussions.

A Japanese trader sold low density PE (LDPE) for October shipment from Saudi Arabia at $1,520/tonne CFR China, while a Middle East producer sold the same grade at $1,530/tonne CFR China for end-October/early November shipment. These were 40-50/tonne higher than previous transactions.

Russian LDPE was offered at $1,480-1,490/tonne CFR China for prompt lifting at the bonded warehouse, against buying ideas at around $1,450/tonne CFR China, up $70/tonne from previous deals.

Imported film grade high density PE (HDPE) of Asian and Middle East origin were selling in the retail market at $1,220-1,250/tonne CFR China for prompt lifting at the bonded warehouse, up $50-60/tonne from last week.

Some traders believe that part of the current PE uptrend was caused by speculation that the US government would introduce further economic stimulus measures to drive domestic economic recovery.

Such measures would boost US demand for finished good export from China and hence, China’s demand for commodity raw materials, the traders said.

($1 = €0.72)

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By: Chow Bee Lin
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