Buy-sell price gaps hamper deepsea PE, PP export to China

10 July 2012 08:58  [Source: ICIS news]

SINGAPORE (ICIS)--China’s polyethylene (PE) and polypropylene (PP) import markets have been inundated with offers of material from Europe and Brazil but a wide gap in buy-sell price ideas of $20-30/tonne (€16-24/tonne) have hampered transactions, Chinese traders said on Tuesday.

Film grade low density PE (LDPE) from Brazil was offered at $1,250-1,260/tonne CFR (cost & freight) China, LC 90 days for August shipment, but buying ideas were $20/tonne lower at $1,240/tonne CFR China, LC (letter of credit) 90 days, Chinese traders said.

A few thousand tonnes of film grade LDPE from Spain and the UK were offered this week at $1,260/tonne CFR China, LC 90 days for August shipment, but these failed to entice buying interest either, they said.

Chinese traders are bidding for these European cargoes at lower prices, they said.

Around 10,000 tonnes of Brazilian PP was offered to China for August shipment, the traders said.

Brazilian PP yarn and injection grades were offered at $1,355-1,380/tonne CFR China, LC 90 days for August shipment, against buying ideas at $1,350/tonne CFR China, LC 90 days, the traders said. Discussions were underway, they added.

Brazilian block copolymer PP was sold at $1,320-1,340/tonne CFR China, LC 90 days for August and September shipment, but the quantity was limited, the traders said.

PP injection and yarn grades were also offered from Spain and Romania in the mid to high $1,300s/tonne CFR China for August shipment, but most importers are bidding at lower prices because of the longer shipment time from Europe, they added.

Offers of the deep sea material had no impact on the retail prices in China because of a lack of transactions, they said.

Additional reporting by Amy Yu, Angie Li

($1 = €0.81)

By: Chow Bee Lin
+65 6780 4359

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