China, southeast Asia LDPE, LLDPE prices fall on weak demand

SINGAPORE (ICIS)--China and southeast (southeast) Asia’s film-grade linear low density polyethylene (LLDPE) and low density PE (LDPE) prices have fallen by 5-6.6% from a month ago, as persistently weak import demand forced some suppliers to reduce their offer prices, industry sources said on Wednesday.

Discussions on the benchmark LLDPE averaged at around $1,295/tonne (€893.55/tonne) CFR (cost & freight) China and $1,330/tonne CFR SE Asia for June arrival, according to market sources.

Film-grade LDPE was discussed at around $1,560-1,600/tonne CFR China and $1,615-1,680/tonne CFR SE Asia this week for June shipment, according to market sources.

These price levels are $80-95/tonne or 5-6.6% lower compared with the previous month, according to ICIS.

The average weekly prices of LLDPE were assessed at $1,375/tonne CFR China and $1,425/tonne CFR SE Asia for the week ended 29 April, according to ICIS.

The average weekly prices of LDPE were at $1,665/tonne CFR China and $1,750/tonne CFR SE Asia for the week ended 29 April, according to ICIS.

China’s weak import demand is largely the result of tightened credit lines and power shortages, local distributors said.

Many importers in SE Asia are deferring their purchases as they believe the weak demand from the key China market will weigh on regional buying sentiment and lead suppliers to reduce their offer prices, regional suppliers said.

($1 = €0.69)