Asia, Mideast coating-grade LDPE makers hike prices, supply tight

28 July 2011 11:54  [Source: ICIS news]

SINGAPORE (ICIS)--Asian and Middle Eastern producers have raised their offers for coating-grade low density polyethylene (LDPE) by at least $70/tonne (€49m) in China and southeast Asia as they expect regional supply to be tight in August, industry sources said on Thursday.

Asian and Middle Eastern producers offered cargoes this week at $1,750-1,850/tonne (cost and freight) China and $1,750-1,820/tonne CFR southeast Asia, $70-150/tonne higher from their July offers, and sold at these levels for August shipments, regional buyers and sellers said.

Asia’s supply of coating-grade LDPE is expected to be tighter next month because a major producer in China, Yanshan Petrochemical, will be shutting its LDPE plants in mid-August for maintenance, industry sources said.

Chinese distributors have also raised their offers for locally produced material in north China by CNY1,000/tonne to yuan (CNY) 16,900-17,000/tonne ($2,624-2,639/tonne) ex-warehouse this week because of supply concerns, market sources said.

Expectations that regional supply would be tight in August also supported LDPE coating grade prices in Thailand, where locally produced material was offered at a Thai baht (Bt) 10/kg ($0.34/kg, $340/tonne) premium over LDPE film grade, local distributors said.

In the Thai market, locally produced LDPE coating grade was offered at Bt61/kg this week, the distributors said.

($1 = CNY6.44 / $1 = Bt29.73 / $1 = €0.70)

Additional reporting by Angie Li

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By: Chow Bee Lin
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