24 January 2014 07:48 [Source: ICIS news]
SINGAPORE (ICIS)--China’s low density polyethylene (LDPE) prices decreased by yuan (CNY) 400-500/tonne ($66-83/tonne) this week due to weak downstream demand and ample supply, industry sources said.
The prices of LDPE film were at CNY12,100-12,800/tonne this week, down by CNY400-500/tonne from last week, according to Chemease, an ICIS service.
Downstream demand is weak due to the upcoming week-long Lunar New Year holiday that starts from 31 January. Traders dropped their offers to entice buying interest as they needed to free up their cash flows before the holiday.
Supply of LDPE is ample, which hampered market sentiment.
Sinopec and PetroChina dropped their offers in order to ease their high inventory pressure before the holiday, according to industry sources.
Sinopec dropped its LDPE offer this week by CNY200/tonne compared with the previous week, while PetroChina dropped its LDPE offer by CNY100-550/tonne compared with the previous week.
Meanwhile, the imported LDPE cargoes from Iran have arrived at port, local traders said.
($1 = CNY6.05)
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