China C6 MLLDPE remains thinly traded amid lacklustre buying

28 March 2017 07:06 Source:ICIS News

SINGAPORE (ICIS)--The C6 metallocene linear low density polyethylene (MLLDPE) in China remains thinly traded amid weak buying appetite, market players said on Tuesday.

Spot offers for April-loading C6 MLLDPE cargoes of non-dutiable southeast Asia origin were mostly stable week on week at $1,390-1,410/tonne CFR (cost and freight) China.

Bids and buying indications meanwhile, were firmly capped at around $1,350/tonne CFR China, as end-users and distributors remain unwilling to take a position in the market owing to offers they deemed too high to be workable in current conditions.

A distributor based in China said that domestic inventory levels for MLLDPE in particular remains relatively high.

In contrast to commodity polyethylene (PE) and polypropylene (PP) domestic spot prices, which have been softening since the Lunar New Year holidays, MLLDPE domestic prices have remained relatively unchanged, owing to stable import prices.

Spot prices in the C6 MLLDPE domestic market in China were stable at around yuan (CNY) 11,000-11,200/tonne EXWH (ex-warehouse) in the week.

As a result, MLLDPE inventory levels have been slow to digest, and there were few end-users seeking spot import cargoes in recent weeks.

By Leanne Tan