Asia HDPE pipe grade sellers eyeing increase in prices

SINGAPORE (ICIS)–Asian sellers of Asia high density polyethylene (HDPE) pipe grade are eyeing an increase in the prices of high density polyethylene (HDPE) pipe grade resins following the rally in upstream markets, market sources said.

Offers and selling ideas for Middle Eastern April shipments were heard at $1,360-1,420/tonne CFR China/SE Asia this wek, an increase of around $40/tonne from the previous week.

Feedstock ethylene prices have continued their uptrend while crude oil values have risen sharply this week, forcing sellers to take a more cautious stance, according to sources.

On the demand front, buyers continue to be only interested in buying small-volume lots on a need-to basis, which is atypical for the upcoming typical peak demand season.

Some buyers have acknowledged the uptrend in prices but their buying ideas, heard at around $1,330/tonne CFR China, but there was still a gap between offers and selling ideas.

Meanwhile, a number of producers have low inventory levels for HDPE pipe grade because of reduced production levels, sources added.

Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections