This week, Low density polyethylene prices dropped in Asia.
An industry source in Asia wishing to remain unidentified informed a Polymerupdate team member, “Signs of de-escalation in Middle Eastern tensions has led to a perceived lowering of oil supply disruption risks from the region. Meanwhile, global oil prices have also trended lower with the International Energy Agency (IEA) down revising its oil demand growth forecast for 2024 and 2025.”
In Far East Asia, LDPE film grade prices were assessed at the USD 1100-1150/mt CFR levels, a fall of USD (-10/-20/mt) from the previous week.
In China, Middle Eastern producers have offered their LDPE film grades in the range of USD 1100-1150/mt CFR levels for shipment in August 2024.
In China, the LDPE market experienced a protracted weakness with many downstream buyers exercising caution while making import purchases as they anticipated a rise in supplies in the domestic market.
In Southeast Asia, LDPE film grade prices were assessed at the USD 1190-1250/mt CFR levels, a week on week decline of USD (-20/mt).
In Vietnam, Middle eastern producers have offered their LDPE film grades in the range of USD 1190-1250/mt CFR levels for shipment in August 2024.
In Southeast Asia, deals and selling indications formed the basis of assessing PE import prices during the current week amid reduced market activity with most suppliers having concluded their sales already for August shipment cargoes. Competition had intensified significantly in the Vietnam PE market with several suppliers stressed with the prospect of making cargo sales ahead of the anticipated restart of Vietnam’s only PE producer in August. Buyers reportedly have adjudged the market outlook as bearish, steered partly by weakening demand in China, in spite of an anticipated commencement of restocking activity later in August by converters in the country to cater to year-end demand.
In India, LDPE prices were assessed at the USD 1160-1200/mt CFR levels, a drop of USD (-20/mt) from last week. A domestic industry source informed a Polymerupdate team member, “Reliance Industries Limited has announced PE prices with effect from August 8, 2024. LDPE HD/LP grade prices have been reduced by Rs.5/kg basic while other LDPE grade prices have been lowered by Rs.3/kg basic.”
In India, Middle Eastern producers have offered their LDPE film grades in the range of USD 1160-1200/mt CFR levels, for shipment in August 2024.
In India, market sentiment was largely sluggish on the back of monsoon-induced demand moderation coupled with ample local material supplies. Availability of domestic cargoes at discounted rates drove buyers to source locally while not opting for import purchases. Although freight costs for import shipments from countries in northeast Asia, chiefly comprising China and South Korea, remained mostly elevated, they were seeing a gradual easing with improved container availability. Reduced freight rates could accelerate the inflows of competitively-priced material as compared to Middle Eastern cargoes.
In Pakistan, LDPE prices were assessed at the USD 1160-1190/mt CFR levels, a fall USD (-20/mt) from the previous week. Market activity was quiet due to a bank holiday in the country.
In Pakistan, overseas suppliers have offered their LDPE film grades in the range of USD 1160-1190/mt CFR levels for shipment in August 2024.
In Sri Lanka, LDPE prices were assessed at the USD 1240-1270/mt CFR levels, a week on week decrease of USD (-10/-20/mt). Market sentiment mostly hovered in the steady to soft range with buyers having stocked material in advance for August 2024 shipment.
In Sri Lanka, overseas producers have offered their LDPE film grades in the range of USD 1240-1270/mt CFR levels for shipment in August 2024.
In Bangladesh, LDPE prices were assessed at the USD 1230-1260/mt CFR levels, a drop of USD (-20/mt) from the previous week. Political uncertainty continued to impede the smooth flow of market activity.
In Bangladesh, overseas producers have offered their LDPE film grades in the range of USD 1230-1260/mt CFR levels for shipment in August 2024.
In feedstock news, CFR South East Asia ethylene prices were assessed at the USD 925-935/mt levels, a week on week rise of USD (+5/mt). CFR North East Asia feedstock ethylene prices were assessed at the USD 870-880/mt levels, a gain of USD (+10/mt) from the previous week.
In plant news, Zhongtian Hechuang has brought on stream its two Low density polyethylene (LDPE) units on July 31, 2024. The unit was shut for maintenance on June 17, 2024. Located in Ordos, Inner Mongolia in China, the two LDPE unit have production capacities of 250,000 mt/year and 120,000 mt/year each.
