Regional supplier cuts MLLDPE October offers on weak demand

SINGAPORE (ICIS)–A major regional supplier cut its offers for October-loading C6 metallocene linear low density polyethylene (MLLDPE) in Asia from September levels, partly on weak demand, importers said on Wednesday.

Buying interest is subdued as the key Chinese market is on a week-long holiday from 1-7 October, and as buyers have ample inventory while there is sufficient spot availability in the market, they said.

October-loading cargoes were offered at $1,670/tonne CFR (cost and freight) CMP (China Main Port) during the week ended 1 October, and negotiations remained underway, market sources said.

In September, C6 MLLDPE parcels were offered at around $1,740/tonne CFR CMP, with actual fixtures concluded largely at $1,720-1,740/tonne CFR CMP, according to ICIS data.

Prices varied depending on factors like purchase volumes, according to market sources.

Lower October offers have prompted expectations of bigger price cuts for C6 MLLDPE for the rest of the month, as demand showed limited signs of picking up amid gloomy macroeconomic conditions, market players said.

MLLDPE is used in the manufacture of stretch film.