PE producers in China intend to lift local offers on bullish futures
Oct. 12, 2018
In China, traders reported that major domestic producers are planning to increase their local PE offers despite unsupportive demand. Hike intentions are attributed to stronger LLDPE futures and lower-than-expected post-holiday supplies.
LLDPE futures on the Dalian Commodity Exchange opened the post-holiday week on a bullish note, with January prices recording a cumulative increase of CNY470/ton ($68/ton) on Monday and Tuesday.
A trader in Xiamen commented, “Two major domestic producers’ overall polyolefin supplies currently stand at around 860,000 tons, up by 1450,000 tons when compared to the pre-holiday week. We were expecting to see a higher increase in supplies.”
In China, local PE prices currently stand at CNY9900-10000/ton ($1243-1255/ton without VAT) for LDPE film, at CNY9700-9800/ton ($1218-1230/ton without VAT) for LLDPE film and at CNY11300-11400/ton ($1418-1431/ton without VAT) for HDPE film, all on ex-warehouse China, cash including VAT basis.