Iranian PE cargoes to flood Chinese market over next six weeks

18 January 2013 08:37  [Source: ICIS news]

SINGAPORE (ICIS)--Around 100,000-200,000 tonnes of Iranian polyethylene (PE) cargoes are expected to flood the Chinese market over the next six weeks, industry sources said on Friday.

The cargoes consisting mainly of low density PE (LDPE) and high density PE (HDPE) film grades, and HDPE injection grades, will arrive at the different Chinese ports from 18 January to 19 February, the sources said.

These Iranian cargoes are shipped in four different ships, namely Touska/0160, Shabdiz/0161, Basht/0162, Behta/0163 and Shabgoun/0164, which will arrive in China at intervals of one to two weeks, a major Chinese trader said.

These five ships carrying Iranian PE are expected to successively call on Chinese ports, namely, Shanghai, Qingdao, Tianjin, Zhoushan and Chiwan – at an interval of one to two weeks, a major Chinese trader said.

The ships will also unload cargoes at the Kaohsiung port of Taiwan, the trader said.

Cargoes unloaded at Zhoushan and Chiwan will be transferred on barges to Ningbo and Huangpu, the trader said.

Touska/0160, which carries 20,000-30,000 tonnes of Iranian PE, will arrive in China on 18 January, first unloading at the Shanghai port, he said.

These five ships were or will be loaded at Asaluyeh and Bandar Abbas in Iran, carrying PE from a number of Iranian producers, including Jam Petrochemical, Arya Sasol, Laleh Petrochemical, Marun Petrochemical and Mehr Petrochemical, the Chinese trader said.

The imminent influx of Iranian cargoes is exerting tremendous pressure on China’s PE import prices, since these cargoes are offered at much lower prices compared with supplies of different origins, Chinese traders said.

On average, Iranian cargoes are priced about $70/tonne lower compared with Asian cargoes, they said.

Iranian LDPE and HDPE film grades are offered this week at $1,365/tonne and $1,385-1,405/tonne, on a cost-and-freight (CFR) China basis for January/February arrival, the traders said.

Asian LDPE and HDPE film grades were offered this week at $1,430-1,440/tonne and $1,460-1,480/tonne, on a CFR China basis for January arrival, they added.

($1 = 0.75)

Additional reporting by Angie Li, Rain Dong

By: Chow Bee Lin
+65 6780 4359

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