Local PE prices move lower in China

10. Mar. 2010

In China, local PE markets are facing downward pressure as a result of poorer than expected demand and weakening ethylene markets. A major producer in the East reduced their offers for LLDPE film by CNY300/ton ($44/ton) while also cutting their offers for HDPE film by CNY200/ton ($29/ton), citing poor demand and rising stock levels as the reasons for their price decreases. The producer's new offers stand at CNY11400/ton ex-warehouse East China, cash inc VAT ($1427/ton without VAT) for LLDPE film and at CNY10300/ton with the same terms ($1289/ton without VAT) for HDPE film.

Meanwhile, another major producer in the East announced a price reduction of CNY350/ton ($51/ton) for LDPE film, while also cutting their HDPE and LLDPE film offers by CNY200/ton ($29/ton), bringing their new offers to CNY12800-12900/ton ($1602-1615/ton without VAT) for LDPE film, CNY11900-11950/ton ($1490-1496/ton without VAT) for LLDPE film and to CNY10400/ton ($1302/ton without VAT) for HDPE film, all on an ex-warehouse East China, cash inc VAT basis. The producer attributed their price reductions to their mounting inventory levels.
[Chemorbis]