This week, HDPE prices declined in the Asian region.
An industry source in Asia informed a Polymerupdate team member, “The Organization of Petroleum Exporting Countries (OPEC)’s monthly report trimmed global crude oil demand forecasts for 2024 and 2025, mitigating the prospects of an upside risk to prices arising from supply disruptions possibly caused by hurricanes in the US Gulf region. Furthermore, Super Typhoon Yagi which made landfall in China and Vietnam and was subsequently downgraded to a tropical storm also did not impact supplies significantly. Consistently gloomy global economic data has continued to exert a bearish pressure on crude oil prices which declined to their lowest levels in 33 months.”
The source added, “Asian buyers are not in a hurry to purchase import cargoes in spite of a temporary bottoming out of prices, signalling that demand concerns continue to drive purchase decisions.”
In Far East Asia, HDPE film prices were assessed at the USD 890-940/mt CFR levels, while HDPE yarn prices were assessed at the USD 920-930/mt CFR levels, both week on week declined by USD (-10/mt). HDPE blow moulding prices were assessed at the USD 880-920/mt CFR levels while HDPE injection prices were assessed at the USD 870-890/mt CFR levels, both lower by USD (-10/mt) from the previous week.
In China, Middle Eastern producers have offered their HDPE film grades in the range of USD 970-1000/mt CFR levels for shipment in September 2024.
China started the month of September, the traditional peak season for PE, on a slow note, with 4 days of trade declines in a row. This has triggered concerns among participants of tepid demand stemming from bleak macroeconomic indices and crude futures registering losses. There were varying viewpoints in the market with some players withholding their bids while others opined that a bearish macroeconomic outlook was weighing on the peak season, with prices anticipated to hit the floor in September.
In Southeast Asia, HDPE yarn prices were assessed at the USD 980-1020/mt CFR levels, while HDPE injection prices were assessed at the USD 930-980/mt CFR levels, both week on week decreased by USD (-10/mt). HDPE BM prices were assessed at the USD 960-1000/mt CFR levels, a fall of USD (-10/mt) from the previous week. Meanwhile, HDPE film prices were assessed flat at the USD 930-980/mt CFR levels.
In Vietnam, Middle Eastern producers have offered their HDPE film grades in the range of USD 930-980/mt levels, for shipment in September 2024.
PE prices in Southeast Asia declined with a reduction in spot deal settlements in the region during the week. Spot discussions were largely minimal with most deals for September shipments already finalized last week. Meanwhile, a few Middle East-origin PE offer announcements made this week were mostly in the same range as the previous week. Regional converters continued to be worried over dampened downstream demand. While current PP price levels are not considered to be elevated, there has been no significant pickup in downstream finished goods demand sentiments, potentially keeping converters away from boosting their PP consumption. Most buyers remained busy in making need-based restocking purchases anticipating uncertainty in pricing movements in September. Trading activities in PE in China are likely to turn sluggish from next week prior to the country closing down for the Mid-Autumn festival holiday from September 15-17.
In India, HDPE film prices were assessed at the USD 960-990/mt CFR levels while HDPE BM prices were assessed at the USD 960-980/mt CFR levels, both down by USD (-10/mt) from the previous week. HDPE Injection prices were assessed at the USD 950-990/mt CFR levels and HDPE yarn prices were assessed at the USD 960-980/mt CFR levels, both week on week decreased by USD (-10/mt).
In India, overseas suppliers have offered their HDPE film grades in the range of USD 960-990/mt levels, for shipment in September 2024.
In India, PE prices in India experienced a declining trend this week with demand remaining in the soft-to-stable range. Markets in the region witnessed excess supplies, with buyers opting to make need-based purchases at competitive rates from local suppliers.
In Pakistan, HDPE yarn grade prices were assessed at the 980-990/mt CFR levels and HDPE injection grade prices were assessed at the USD 970-980/mt CFR levels, both week on week lower by USD (NC/-10/mt). HDPE BM grade prices were assessed at the USD 980-1000/mt CFR levels while HDPE film prices were assessed at the USD 980-990/mt CFR levels, both declined by USD (NC/-10/mt) from last week. The market sentiment was reportedly bearish, as evidenced by high inventories piled with converters.
In Pakistan, overseas suppliers have offered their HDPE film grades in the range of USD 960-990/mt levels, for shipment in September 2024.
In Sri Lanka, HDPE film prices were assessed at the USD 1020-1060/mt CFR levels and HDPE BM prices were assessed at the USD 1020-1060/mt CFR levels, both lower by USD (-20/mt) from the previous week. HDPE injection grade prices were assessed at the USD 1010-1040/mt CFR levels while HDPE yarn grade prices were assessed at the USD 1020-1050/mt CFR levels, both declined by USD (-20/mt) from the previous week. Prices were lower owing to a dull buying sentiment in the region. Buyers remained on the sidelines ahead of on election in the region.
In Sri Lanka, overseas suppliers have offered their HDPE film grades in the range of USD 1020-1060/mt levels, for shipment in September 2024.
In Bangladesh, HDPE BM prices were assessed at the USD 1000-1020/mt CFR levels and HDPE film prices were assessed at the USD 1000-1020/mt CFR levels, both lower by USD (-20/mt) from the previous week. HDPE Injection grade prices were assessed at the USD 990-1010/mt CFR levels while HDPE yarn prices were assessed at the USD 990-1010/mt CFR levels, both week on week decreased by USD (-20/mt). Political tensions continued to weigh on prices.
In Bangladesh, overseas suppliers have offered their HDPE film grades in the range of USD 1020-1060/mt levels, for shipment in September 2024.
Feedstock ethylene CFR South East Asia ethylene prices were assessed at the USD 870-880/mt levels, while CFR North East Asia prices were assessed at the USD 870-880/mt levels, both lower by USD (-5/mt) from the previous week.
Sinopec Yangzi Petrochemical is likely to shut down its High density polyethylene (HDPE) unit in mid-September 2024. The unit is slated to remain offline until end September 2024. Located in Nanjing, China, the HDPE unit has a production capacity of 70,000 mt/year.
Sinopec Maoming has brought on stream its Linear low density polyethylene/High density polyethylene (LLDPE/HDPE) plant on August 25, 2024. The plant was shut for maintenance on August 20, 2024. Located in Quanzhou, Fujian in China, the LLDPE/HDPE plant has a production capacity of 400,000 mt/year.
