China's domestic LDPE film supply reduced, prices firm up

13 January 2012 05:51  [Source: ICIS news]

SINGAPORE (ICIS)--China's domestic low density polyethylene (LDPE) film supply decreased this week because of a shutdown at one plant and switching to another product by a second plant resulting in its prices to firm up, industry sources said on Friday.

China Maoming Petrochemical’s 250,000tonne/year LDPE unit in Guangdong shut down on 11 January because of equipment failure. The company plans to restart it on 15 January.

On the other hand Yanshan Petrochemical’s a 200,000tonne/year LDPE plant in Beijing switched to producing special material for the production of wire and cable insulation sheath on 4 January resulting in reduced supply of LDPE film in the domestic market.

The supply tightening has come at a time when many downstream manufacturers such as the film packaging industry are planning to purchase LDPE to shore up inventory ahead of the Lunar New Year holidays that start from 22 January.

As a result China’s domestic LDPE film offering price rose by Chinese yuan CNY50-100/tonne ($8-16/tonne) to CNY10,600-11,000/tonne EXWH (ex-warehouse) on 13 January from CNY10,500-10,950/tonne EXWH on 11 January.

($1 = CNY6.31)

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By: Amy Yu

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