Linear Low Density Polyethylene (LLDPE) prices fall in Asia

LLDPE prices declined across the Asian region this week.

An industry source in Asia wishing to remain unidentified informed a Polymerupdate team member, "Prices dropped mainly on account of lower import offers from overseas suppliers coupled with a tepid buying sentiment. A week on week drop in upstream energy values and a fall in LLDPE futures further pressured prices lower in the region. "

The source added, ”There has been a marked decrease in export orders for the plastic industry as compared to last year. Tightening liquidity conditions in western countries prompted by a spate of rate hikes by the US Fed and a crisis in the country’s banking system has resulted in the market environment becoming more uncertain.”

In Far East Asia, LLDPE prices were assessed at the USD 945-975/mt CFR levels, a week on week drop of USD (-15/mt). Sluggish demand supply fundamentals led to a stable to soft undertone in import discussions. Overseas sellers were hesitant in making offers to China as they opined that prices in the country were the lowest in Asia. Meanwhile, buyers were also disinclined to make purchases of US dollar-denominated cargoes as a devalued Chinese Yuan increases the purchase cost of import cargoes.

In China, Middle Eastern producers have offered their LLDPE film grades in the range of USD 945-975/mt CFR levels for shipment in end May/early June 2023.

In South East Asia, LLDPE prices were assessed at the USD 980-1020/mt CFR levels, down USD (-20/mt) from the previous week. A weak demand sentiment prevailing in the Chinese market had a ripple effect on the purchase pulse in the Southeast Asian region, dampening it further.

In Vietnam, Middle Eastern producers have offered their LLDPE film grades in the range of USD 980-1020/mt CFR levels for shipment in end May/early June 2023.

In India, LLDPE prices were assessed at the USD 1020-1060/mt CFR levels, a drop of USD (-10/mt) from the previous week. A majority of buyers adopted a cautious approach on account of prevalent economic uncertainties. A few buyers are expecting price cuts in the near term upon an anticipated dampening of finished goods demand with the start of the monsoon season.

In India, Middle Eastern producers have offered their LLDPE film grades in the range of USD 1020-1060/mt CFR levels for shipment in end May/ early June 2023.

A domestic industry source informed a Polymerupdate team member, “Reliance Industries Limited announced a revision in PE prices with effect from May 11, 2023. LLDPE Extrusion grade prices were reduced by Rs.5/kg basic while all other LLDPE grade prices were revised lower by Rs.3/kg basic. Price protection was announced from May 11 till June 1 2023 (6 hrs), or the next price change, whichever is earlier.”

In Pakistan, LLDPE prices were assessed at the USD 1120-1160/mt CFR levels, down USD (-20/NC/mt) from last week.

In Pakistan, an overseas producer offered its LLDPE film grade at the USD 1140/mt levels for shipment in end May/early June 2023. A Middle Eastern producer has offered its LLDPE film grade at the USD 1160/mt CFR levels for shipment in end May/ early June 2023.

In Sri Lanka, LLDPE prices were assessed at the USD 1100-1150/mt CFR levels, a week on week decline of USD (-10/mt).

In Sri Lanka, overseas suppliers have offered their LLDPE film grades in the range of USD 1100-1150/mt CFR levels for shipment in end May/early June 2023.

In Bangladesh, LLDPE prices were assessed at the USD 1060-1110/mt levels, a fall of USD (-10/mt) from last week.

In Bangladesh, overseas suppliers have offered their LLDPE film grades in the range of USD 1060-1110/mt CFR levels for shipment in end May/early June 2023.

In Pakistan, Sri Lanka and Bangladesh, buyers preferred to buy Chinese reexport cargoes of Middle East origin at lower price levels rather than making direct purchases from Middle Eastern producers.

Feedstock ethylene prices on Tuesday were assessed stable at the USD 915-925/mt CFR South East Asia levels. Meanwhile, CFR North East Asia ethylene prices were assessed at the USD 860-870/mt levels, a week on week drop by USD (-25/mt).

In plant news, Zhejiang Petrochemical has shut its No.2 HDPE/LLDPE unit and HDPE unit in mid-May 2023 for a maintenance turnaround. Located in China, the No.2 HDPE/LLDPE unit has production capacity of 450,000 mt/year and HDPE unit has production capacity of 300,000 mt/year.

In other plant news, PetroChina Lanzhou has shut its Linear low density polyethylene (LLDPE) unit on May 9, 2023 owing to a technical glitch. Further details on duration of the shutdown could not be ascertained. Located in China, the HDPE unit has production capacity of 300,000 mt/year.