China LLDPE import trade stalls on sharp futures decline

10 November 2011 04:26  [Source: ICIS news]

By Chow Bee Lin

ChinaSINGAPORE (ICIS)--China’s linear low density polyethylene (LLDPE) import trade has stalled as the sharp fall on the LLDPE futures market early on Thursday has caused uncertainty in the market outlook, industry sources said.

There was no buying interest for spot cargoes after the futures plunged, but spot prices are holding up, local traders said.

Most local traders were unwilling to sell November cargoes at below $1,200/tonne (€888/tonne) CFR (cost & freight) China because their import costs were at around $1,140-1,180/tonne CFR China, they said.

Traders sold cargoes at $1,200-1,220/tonne CFR China earlier in the week, they added.

China’s LLDPE futures trade was halted early on Thursday after prices fell by 5% on concerns about the eurozone debt crisis.

“The sharp fall in this morning’s futures prices was triggered by an external factor, so sellers in the spot market are not that bearish,” a Shanghai-based PE trader said.

A Zhejiang-based PE trader said it remains to be seen how the plunging futures would affect the spot market.

“The sharp fall in futures was not caused by developments in China, so it is unclear if it will have significant impact on China’s spot PE market,” he said.

“Given the [current] uncertainty, there will not be much buying interest even if we drop our price offers to below $1,200/tonne CFR China,” he added.

($1 = €0.74)

For more on polyethylene, visit ICIS chemical intelligence
Please visit the complete ICIS plants and projects database
Read John Richardson and Malini Hariharan’s blog –
Asian Chemical Connections


By: Chow Bee Lin
+65 6780 4359



AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

ICIS news FREE TRIAL
Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index

Related Articles