China LLDPE import prices fall 6.4% as traders liquidate stocks

30 September 2011 11:00  [Source: ICIS news]

SINGAPORE (ICIS)--China’s import prices of linear low density polyethylene (LLDPE) film have fallen this week by $40/tonne, or 6.4%, as domestic traders sold down their stocks before the week-long holidays in the country, local distributors said on Friday.

Deals were heard at $1,210-1,260/tonne (€895-932/tonne) CFR (cost and freight) China for prompt lifting from ex-bonded warehouse and October shipments this week.

In the week ended 23 September, film grades LLDPE were assessed at $1,250-1,300/tonne CFR (cost and freight) China, according to ICIS.

The Chinese markets will be closed on 1-7 October for its National Day celebration.

On Thursday, a key east China-based trader was offering $1,180/tonne CFR China for October shipments, but this price level did not reflect the mainstream market, local distributors said.

Growing worries that the eurozone debt crisis will plunge the world economy into a second global financial crisis have weighed on sentiment in the LLDPE futures market in China.

China’s domestic LLDPE prices are also on a downward spiral, dragging the import prices along, the distributors said.

LLDPE producers have adjusted down their offers, with a few Middle East producers cutting their prices by as much as $30/tonne early this week to $1,250-1,310/tonne CFR for October cargoes, market sources said.

On Thursday, another Middle East LLDPE producer announced its first offer for October cargoes at $1,220-1,230/tonne CFR China, according to Chinese distributors.

In the eastern Chinese domestic market, LLDPE spot prices were discussed at yuan (CNY) 9,200-9,800/tonne ($1,438-1,531/tonne) EXWH (ex-warehouse) this week, market sources said.

 ($1 = €0.74 / $1 = CNY6.40)

Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections

By: Ong Sheau Ling
+65 6780 4359

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