22 June 2011 13:55 [Source: ICIS news]
LONDON (ICIS)--Increased availability of low-density polyethylene (LDPE) film re-exports from southeast Asia has resulted in a price decrease of $60/tonne (€41/tonne) in southern Africa, market sources said on Wednesday.
For the week ended 17 June, LDPE prices had fallen by 6.63-8.13% in China and 5.78-8.38% in southeast Asia from a month ago, to $1,470-$1,550/tonne and $1,530-1,630/tonne CFR (cost and freight) respectively.
Meanwhile, prices in southern Africa had fallen only by around 1% to stand at $1,780-1,820/tonne CFR for the week ended 15 June, leading to a wide price gap of $310-270/tonne between product in the region and those seen in ?xml:namespace>
Although the arbitrage window opened in March, which is when the gap between prices in Asia and in southern Africa began to widen, the increasing interest to buy from the region is recent, leaving southern
“We are receiving cheaper offers from all over Asia; from
LDPE film prices in
"We are assuming there is lots of LDPE lying around in southeast Asia and they are dumping material here," another distributor said, adding that it had received offers at $1,540/tonne for 200 tonnes but refrained from buying: "The price sounds too good to be true, but also, we have enough material for the month."
"We were offered LDPE at $1,720/tonne from
Despite distributors stocking up on cheaper product from abroad, they are quick to agree that demand in southern
"Inconsistency and supply problems [surrounding product from]
($1 = €0.69)
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