ExxonMobil raises MLLDPE offers in China by $30/tonne

11 September 2012 11:48  [Source: ICIS news]

SINGAPORE (ICIS)--ExxonMobil has raised its offers for hexene-based metallocene linear low density polyethylene (MLLDPE) by $30/tonne (€23/tonne) in China this week, taking the cue from spikes in values of polyethylene (PE) in the European market, Chinese importers said on Tuesday.

The company is offering hexene-based MLLDPE at $1,500/tonne CFR (cost and freight) China for September shipment, up from $1,470/tonne CFR China last week, also citing high cost of feedstock ethylene, they said.

ExxonMobil declined to comment on the issue.

Prices of feedstock ethylene in Asia were assessed at $1,300-1,380/tonne CFR northeast Asia on 7 September, up $30/tonne from the previous week, according to ICIS.

PE prices in Europe soared on the back of strong naphtha prices.

Last week, the company had informed its buyers in China and southeast Asia about hiking hexene-based MLLDPE offers by as much as $200/tonne in the coming weeks, market sources said.

But some market participants said that ExxonMobil may find it difficult to achieve the proposed price increase in Asia given continued weakness in downstream demand.

Several buyers in China said they have not booked MLLDPE cargoes at ExxonMobil’s current offers.

Business has been bad for plastics processors in Asia because of slower growth in global consumer demand this year, a Malaysian PE film processor said.

“With consumer demand slowing down globally, how can we be paying more for plastics resins,” the Malaysian PE film processor said.

($1 = €0.78)

By: Chow Bee Lin
+65 6780 4359

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