This week, HDPE prices were assessed lower in some parts of South Asian region while quoting flat in other parts of Asia.
An industry source in Asia informed a Polymerupdate team member, “An escalation in geopolitical tensions in the Middle East combined with the deepening conflict between Russia and Ukraine has already pushed oil prices higher. Market participants opine that persisting geopolitical risks could further raise the prospect of crude oil prices trading with a significantly upward bias in the near term.”
In Pakistan, HDPE yarn grade prices were assessed at the 1020-1030/mt CFR levels, while HDPE injection grade prices were assessed at the USD 1010-1020/mt CFR levels, both week on week declined by USD (-10/mt). HDPE BM grade prices were assessed at the USD 1020-1040/mt CFR levels while HDPE film prices were assessed at the USD 1020-1040/mt CFR levels, both lower by USD (-10/mt) from last week.
In Pakistan, trading activity has slowed down on account of reduced working hours during the Islamic holy month of Ramadan. Lower import offers pressured prices lower. While producers announced fresh offers for the month of April, buyers were seen bidding below the quoted offers given that prevalent market conditions are weak.
In Pakistan, overseas supplier have offered their HDPE Film grades in the range of USD 1020-1040/mt CFR levels for shipment in April 2024.
In Bangladesh, HDPE BM prices were assessed at the USD 1040-1060/mt CFR levels and HDPE film prices were assessed at the USD 1040-1060/mt CFR levels, both declined by USD (-10/mt) from last week. HDPE Injection grade prices were assessed at the USD 1030-1050/mt CFR levels while HDPE yarn prices were assessed at the USD 1030-1050/mt CFR levels, a week on week decrease of USD (-10/mt).
In Bangladesh, the trading momentum had decelerated during the Islamic holy month of Ramadan. Prices trended lower on the back of lower import offers from overseas suppliers. Buyers were not keen on accepting fresh April offers announced by producers and were bidding below the stated offers citing tepid market sentiments.
In Bangladesh, overseas producers have offered their HDPE Film grades in the range of USD 1040-1060/mt CFR levels for shipment in April 2024.
In Sri Lanka, HDPE film prices were assessed at the USD 1060-1100/mt CFR levels and HDPE BM prices were assessed flat at the USD 1060-1100/mt CFR levels, both week on week declined by USD (-20/mt). HDPE injection grade prices were assessed at the USD 1040-1070/mt CFR levels while HDPE yarn grade prices were assessed at the USD 1050-1080/mt CFR levels, both lower by USD (-20/mt) from the previous week. The purchase pulse was reported to be muted in the region. Lower import offers from overseas suppliers led to prices trending downward in the region.
In Sri Lanka, Middle Eastern producers have offered their HDPE Film grades in the range of USD 1060-1100/mt CFR levels for shipment in April 2024.
Meanwhile, in Far East Asia, HDPE injection prices were assessed at the USD 910-930/mt CFR levels while HDPE yarn prices were assessed at the USD 940-960/mt CFR levels, both steady from the previous week. HDPE blow moulding prices were assessed flat at the USD 910-950/mt CFR levels, while HDPE film prices were also assessed steady at the USD 950-990/mt CFR levels.
In China, PE import price negotiations were restricted within the stable to soft range amid the narrowing of assessment ranges. Some prices witnessed a slight uptick owing to a lack of competitively priced material even as downstream producers displayed an unwillingness to replenish inventories citing elevated prices of a few import grades as compared to domestic price levels.
Spot market trading momentum had weakened with downstream converters stating that they would prefer to use inventory that was available with them.
In Southeast Asia, HDPE film prices were assessed at the USD 1000-1040/mt CFR levels, unchanged from the previous week. HDPE yarn prices were assessed stable at the USD 1000-1030/mt CFR levels while HDPE BM prices were also assessed steady at the USD 980-1010/mt CFR levels. HDPE injection prices were assessed at the USD 980-1020/mt CFR levels, flat week on week.
PE prices remained steady in Southeast Asia. The market sentiment in Vietnam was noticeably weak with cargoes for April shipments settling at reduced prices. Persistently lacklustre demand sentiments in India and China has prompted Middle Eastern producers to quote more offers for the Southeast Asian region in hopes of garnering better netbacks. Meanwhile, buyers in Vietnam were reportedly seeking additional discounts for initial April cargo offers hinting at dampened consumer appetite in other regional markets, resulting in a fall in prices. Furthermore, PE price discussions in the region remained within a stable to soft range. The Good Friday holiday weekend led to a decelerated market momentum in the region. The ongoing Islamic holy month of Ramadan further slowed down activity in key Southeast Asian markets like Indonesia and Malaysia.
In India, HDPE Film prices were assessed at the USD 980-1030/mt CFR levels, while HDPE BM prices were assessed at the USD 990-1020/mt CFR levels, both steady from the previous week. HDPE Injection prices were assessed at the USD 980-1020/mt CFR levels while HDPE yarn prices were assessed at the USD 990-1010/mt CFR levels, both stable week on week. A domestic industry source informed a Polymerupdate team member, “Reliance Industries Limited rolled over HDPE and LLDPE prices with effect from April 1, 2024.”
The source added, “Prices were mostly rolled over with buyers awaiting fresh import offers from overseas suppliers. While limited offers for import cargoes emerged during the week, key foreign producers were impeded in their efforts to push material into India. Buyers mostly remained in a wait and watch mode while opting to see where prices in the domestic market were headed before making large quantity transaction decisions. Market sentiment was also impacted due to reduced working hours in the region on account of the ongoing Muslim month of Ramadan.
Feedstock ethylene prices on Tuesday were assessed at the USD 1005-1015/mt CFR South East Asia levels while CFR North East Asia ethylene prices were assessed at the USD 925-935/mt levels, both rolled over from the previous week.
In plant news, Lianyungang Petrochemical is in plans to take off stream its No.2 High density polyethylene (HDPE) unit on April 4, 2024 for maintenance. Further details on the duration of the shutdown could not be ascertained. Located in Xuwei, China, the No.2 unit has a production capacity of 400,000 mt/year.
