06 March 2012 10:06 [Source: ICIS news]
SINGAPORE (ICIS)--China’s domestic prices of linear low density polyethylene (LLDPE) rose on Tuesday, after domestic suppliers increased their list prices on the back of increasing demand and tightened supply, industry sources said.
Prices increased by yuan (CNY) 50/tonne ($8/tonne) to CNY10,200-10,350/tonne EXWH (ex-warehouse) on Tuesday, up from CNY10,150-10,350/tonne EXWH on 5 March.
Supply tightened following active buying in the market, lifting the sentiment of local traders, who subsequently raised their offers, according to local distributors.
At Sinopec’s branches, LLDPE film prices rose by CNY200/tonne to CNY10,200-10,500/tonne, up from the previous day’s level of CNY10,200-10,300/tonne, according to data from Chemease, an ICIS service in China.
Sinopec prices also rose because of reduced supply of LLDPE, a company source said, without giving reasons for the tightened supply.
The increase in prices raised the spot costs of distributors, who then hiked their prices to pass on higher costs to end-users, market players said.
Market sentiment is expected to strengthen in March as seasonal demand for agricultural LLDPE film emerges in northern China, industry players said.
Additional reporting by Summer Zhang, Lizzie Yu, Rain Dong and Doreen Zhao
($1 = CNY6.31)
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