SINGAPORE (ICIS)--China’s high density polyethylene pipe grade (HDPE) prices have been on a downtrend since July, with the near-term market outlook still bearish, traders said.
On 3 December, black HDPE pipe grade prices were assessed at an average of $1,335/tonne CFR (cost and freight) China, down by around 12% from early July, according to ICIS data.
For natural HDPE pipe grade, prices have shed about 15% over the same period to $1,225/tonne CFR China, the data showed.
Domestic prices in China have recently declined at a faster rate than import prices, amid an oversupply in the local market.
Consequently, buying interest for imported cargoes natural HDPE pipe grades weakened, market sources said.
Demand for black HDPE 100 pipe grade imports, on the other hand, was stable, since the market is less susceptible to price movements in the domestic market.
A Middle East producer increased its production of HDPE pipe grade since October as the material is getting better netback margins compared with HDPE grades, market sources said.
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