02 November 2012 08:21 [Source: ICIS news]
SINGAPORE (ICIS)--Iran’s proposed ban on polyethylene (PE) export has prompted some traders in China to raise their offers for the polymers, while some of them have stopped offering Iranian material, market sources said on Friday.
“We’ve stopped offering Iranian PE, to be on the safe side, even though we’re optimistic that PE export from Iran will resume shortly,” a Shanghai-based trader said.
“Our Iranian suppliers told us that the problems should be resolved by next week,” he said.
“Many traders have stopped offering Iranian PE. Offices are closed in Iran today. It is difficult to say if Iran will actually ban PE export,” a source with a northeast Asian trading house said.
A number of Chinese traders had raised their PE price offers in the belief that a PE import ban in Iran will push up China’s PE import prices.
A global trader raised its offers for Brazilian cargoes by $20/tonne (€15/tonne) to $1,340/tonne for low density polyethylene (LDPE) and to $1,390/tonne for high density PE (HDPE) film on a CFR (cost and freight) China basis.
A Chinese trader increased offers for Saudi LDPE by $10/tonne to $1,330/tonne CFR China, while another trader in China nudged up its offer by $20/tonne for Saudi linear LDPE (LLDPE) to $1,410/tonne CFR China, LC 90 days for November shipment.
Iran is one of the major exporters of LDPE and HDPE to China, according to China Customs data.
Iran exported 854,600 tonnes of PE to China in January-September this year, up 44% year on year, official data showed.
($1 = €0.77)
Additional reporting by Amy Yu, Rain Dong
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