This week, Low density polyethylene prices down adjusted in Asia.
An industry source in Asia wishing to remain unidentified informed a Polymerupdate team member, “Rising hopes of a ceasefire agreement being brokered between Israel and Hamas and a perceived easing of tensions in the Middle East exerted a bearish pressure on oil prices.”
The source added, “Meanwhile, ethylene prices in Southeast Asia witnessed a sharp rise on the back of tight supplies stemming from cracker outages and curtailed run rates at a few facilities. A fall in shipment volumes from the Middle East and prompt demand for spot cargoes further pushed prices higher.”
The source further stated, “Concerns have been mounting over weakening demand for finished products in Asia, as evidenced by some converters struggling with a pileup of finished product inventories at their warehouses. Furthermore, elevated freight rates have also impacted west-bound export shipments of converters over the June-August period.”
In Far East Asia, LDPE film grade prices were assessed at the USD 1090-1140/mt CFR levels, a drop of USD (-10/mt) from the previous week.
In China, Middle Eastern producers have offered their LDPE film grades in the range of USD 1090-1140/mt CFR levels for shipment in end August/early September 2024.
In China, demand had weakened across the region with customers exhibiting a disinclination towards making bulk purchases from international suppliers. Downstream market participants are bogged down by inventory pressure and have slowed down their purchases. Meanwhile, China is expected to experience a pickup in demand for polyethylene from September during the agriculture season in the country.
In Southeast Asia, LDPE film grade prices were assessed at the USD 1170-1230/mt CFR levels, a week on week decrease of USD (-20/mt).
In Vietnam, Middle eastern producers have offered their LDPE film grades in the range of USD 1170-1230/mt CFR levels for shipment in end August/ early September 2024.
In Southeast Asia, import transactions in major regional markets were muted with deals and offers forming the basis of import price assessments. The market condition, however, was different in Vietnam with negotiations taking place within assessed ranges. Deals were concluded in the later part of the week towards the lower range as a surplus of competitively-priced products weighed on prices, leading to a huge divergence in pricing levels between Vietnam and the rest of Southeast Asia. While converters struggled with an accumulation of finished product inventories owing to dampened demand sentiments, buyers were seen making need-based purchases owing to a perceived gloomy market outlook.
In India, LDPE prices were assessed at the USD 1150-1190/mt CFR levels, a fall of USD (-10/mt) from last week.
A domestic industry source informed a Polymerupdate team member, “Reliance Industries Limited has announced a revision in PE prices with effect from August 15, 2024. LD Heavy Duty sector VMD grade prices are reduced by Rs.4/kg basic while JMD grade prices have been lowered by Rs.2/kg basic. Meanwhile there is no price change in all other LD sectors.”
The source added, “Price Protection has been announced in all LDPE/LLDPE/HDPE grades wef August 14 till September 1, 2024 (0600hrs).”
In India, Middle Eastern producers have offered their LDPE film grades in the range of USD 1150-1190/mt CFR levels, for shipment in end August/ early September 2024.
In India, market participants expected prices to soften further in September with monsoon continuing to dampen buying activity. Although domestic producers made multiple scheme announcements to bolster buying activity, they continued to face resistance from buyers.
In Pakistan, LDPE prices were assessed at the USD 1150-1180/mt CFR levels, a drop of USD (-10/mt) from the previous week.
In Pakistan, overseas suppliers have offered their LDPE film grades in the range of USD 1150-1180/mt CFR levels for shipment in end August/early September 2024.
In Sri Lanka, LDPE prices were assessed at the USD 1230-1260/mt CFR levels, a week on week decrease of USD (-10/mt).
In Sri Lanka, overseas producers have offered their LDPE film grades in the range of USD 1230-1260/mt CFR levels for shipment in end August/early September 2024.
In Bangladesh, LDPE prices were assessed at the USD 1220-1260/mt CFR levels, a fall of USD (-10/NC/mt) from the previous week. Political uncertainty clouded market sentiment in the country.
In Bangladesh, overseas producers have offered their LDPE film grades in the range of USD 1220-1260/mt CFR levels for shipment in end August/ early September 2024.
In Pakistan, Sri Lanka and Bangladesh, buying was reported to be in the steady to soft range even as market participants awaited fresh import offers.
In feedstock news, CFR South East Asia ethylene prices were assessed at the USD 975-985/mt levels, a week on week spike of USD (+50/mt). CFR North East Asia feedstock ethylene prices were assessed at the USD 875-885/mt levels, a gain of USD (+5/mt) from the previous week.
In plant news, Zhejiang Petrochemical has taken off stream its Low density polyethylene (LDPE) unit on August 10, 2024 owing to technical issues. The unit is expected to remain offline for about two weeks. Located in Zhejiang, China, the LDPE unit has a production capacity of 400,000 mt/year.
In other plant news, Zhejiang Petroleum & Chemical (ZPC) has shut down its Low density polyethylene (LDPE) unit in mid-August 2024. Further details on the duration of the shutdown could not be ascertained. Located in Zhoushan, Zhejiang in China, the LDPE unit has a production capacity of 300,000 mt/year.
In another plant news, Sinopec Maoming Petrochemical has shut down its Low density polyethylene (LDPE) plant for maintenance on August 15, 2024. The plant is slated to remain offline until end August, 2024. Located in Guangdong, China, the LDPE plant has a production capacity of 110,000 mt/year.
