SINGAPORE (ICIS)--China’s low density polyethylene (LDPE) import prices fell by 1.8% this week because of weak domestic prices and dampened buying interest in imported cargoes, industry sources said on Friday.
Imported film grade LDPE was sold at Chinese yuan (CNY) 11,800-12,100/tonne EXWH (ex-warehouse) in eastern China, which yield import parities of $1,532-1,572/tonne CFR (cost and freight) China,
The import parity levels are on average around $40/tonne (CNY242/tonne) lower than the prevailing prices of imported LDPE film grades, the sources said.
Middle East and Asian LDPE film grades were sold at $1,560-1,620/tonne CFR (cost and freight) China this week, down by $40/tonne from last week, they said.
Domestic prices of locally produced and imported LDPE film grades were under pressure this week also because of the heavy arrival of imports in January, high local producer inventory and weak downstream demand, Chinese distributors said.
Local producers had built up inventory over the week-long Lunar New Year holiday which ended on 7 February, and many downstream plastics processors were still away for the holiday, they said.
Additional reporting by Angie Li
($1 = CNY6.06)