This week, Low density polyethylene prices gained in some parts of Asia, while they quoted flat in other parts of the region.
An industry source in Asia wishing to remain unidentified informed a Polymerupdate team member, “The US Federal Reserve's unflinching focus on holding key interest rates higher, citing a lack of progress in tackling inflation, has dampened purchase interest for commodities like crude oil, thereby exerting a bearish pressure on prices. Meanwhile, global container shipping rates have witnessed a continual spike amid major global ports facing vessel congestions and shipping delays.”
In Far East Asia, LDPE film grade prices were assessed at the USD 1160-1210/mt CFR levels, an increase of USD (+20/+30/mt) week on week.
In China, Middle Eastern producers have offered their LDPE film grades in the range of USD 1160-1210/mt CFR levels for shipment in July 2024.
In China, severe container crunch in the Middle East, which accounts for a major chunk of LDPE supply to China, led to prices trending higher. Furthermore, heavy maintenance activity across plants in China which resulted in a tight supply situation also lent support to prices. Meanwhile, Chinese customs data stated that China’s PE import volumes were pegged at 1,019,000 mt in May, lower by 1.5% on the year.
In Southeast Asia, LDPE film grade prices were assessed at the USD 1260-1310/mt CFR levels, a week on week rise of USD (+30/mt).
In Vietnam, overseas suppliers have offered their LDPE film grades in the range of USD 1260-1310/mt CFR levels for shipment in July 2024.
In Southeast Asia, there was a continual rise in offers with regional producers experiencing a tight supply situation. Meanwhile, non-fulfilment of earlier contractual obligations has led to regional producers limiting allocations for July shipment. Although US origin offers were low-priced, purchase appetite for US cargoes was constrained owing to longer transit times.
In Sri Lanka, LDPE prices were assessed at the USD 1260-1300/mt CFR levels, a gain of USD (+20/mt) week on week.
In Sri Lanka, overseas producers have offered their LDPE film grades in the range of USD 1260-1300/mt CFR levels for shipment in July 2024.
In Bangladesh, LDPE prices were assessed at the USD 1270-1300/mt CFR levels, higher by USD (+20/+30/mt) from the previous week.
In Bangladesh, overseas suppliers have offered their LDPE film grades in the range of USD 1270-1300/mt CFR levels for shipment in July 2024.
In Sri Lanka and Bangladesh, container space scarcity and fluctuating import schedules led to tightening of LDPE supplies, pushing prices higher in the region.
Meanwhile, in India, LDPE prices were assessed at the USD 1250-1280/mt CFR levels, unchanged week on week.
In India, logistical bottlenecks have resulted in supply constraints over the last two months. Exporters are finding it increasingly difficult to ship material to India on account of vessel congestion at Indian ports. Regional traders are selling material at higher price levels than quoted by domestic producers in the open market of India.
In Pakistan, LDPE prices were assessed stable at the USD 1190-1220/mt CFR levels.
In Pakistan, market sentiment was heard to be in the steady to soft range as buyers await fresh import offers from overseas suppliers which are expected be announced in this week.
In feedstock news, CFR North East Asia feedstock ethylene prices were assessed at the USD 840-850/mt levels, a week on week rise of USD (+5/mt). Meanwhile, CFR South East Asia ethylene prices were assessed flat at the USD 940-950/mt levels.
In plant news, Lanzhou Petrochemical is likely to shut its Low density polyethylene (LDPE) unit for maintenance on June 27, 2024. The unit is slated to remain offline until June 30, 2024. Located in Lanzhou, Gansu province of China, the LDPE unit has a production capacity of 200,000 mt/year.
Lotte Chemical Titan has brought on stream its Low density polyethylene (LDPE) plant on June 6, 2024 following a turnaround. The plant was shut for maintenance in end April 2024. Located at Pasir Gudang, Johor in Malaysia, the LDPE plant has a production capacity of 230,000 mt/year.
