This week, LDPE prices climbed in Asia.
An industry source in Asia wishing to remain unidentified informed a Polymerupdate team member, "Several bullish factors including a continually escalating Red Sea conflict situation and subfreezing weather conditions resulting in unplanned outages at refineries and downstream production facilities on the U.S. Gulf Coast pressured prices higher. Meanwhile, logistical bottlenecks caused by the ongoing Red Sea crisis could prompt Middle Eastern producers to announce a hike in export offers to Asia.”
In Far East Asia, LDPE film grade prices were assessed at the USD 1030-1050/mt CFR levels, a week on week gain of USD (+20/mt).
In China, fresh offers from overseas suppliers were limited, spurring local Chinese producers to raise ex-factory prices in the domestic markets. Meanwhile, some restocking activity by market participants was seen ahead of the Lunar New Year holiday amid anticipation of a tepid end-user demand.
In China, a Middle Eastern producer has offered its LDPE film grade at the USD 1050-1060/mt CFR levels for shipment in January 2024. A producer from Saudi Arabia has offered its LDPE film grade at the USD 1030-1040/mt CFR levels for shipment in January 2024.
In Southeast Asia, LDPE film grade prices were assessed at the USD 1030-1060/mt CFR levels, an increase of USD (+20/mt) from the previous week.
Deals in the spot market were limited with a further rise in regional PE offers, with resistance offered by downstream converters to accept the hikes. Continually weak macroeconomic fundamentals weighed on downstream PE consumption even as converters were focused on making need-based purchases.
In Southeast Asia, a producer from Saudi Arabia has offered its LDPE film grade at the USD 1030-1040/mt CFR levels for shipment in January 2024. A Middle Easter producers have offered their LDPE film grades at the USD 1060-1070/mt CFR levels for shipment in January 2024.
In India, LDPE prices were assessed at the USD 1090-1120/mt CFR levels, up week on week by USD (+20/mt).
A domestic industry source informed a Polymerupdate team member, “Reliance Industries Limited has revised PE prices with effect from January 11, 2024. LDPE GP/HP/LP grade prices were hiked by Rs.3/kg basic, while LDPE AL/WC grade prices were increased by Rs.2.50/kg basic and LDPE IM/EC grade prices raised by Rs.2/kg basic.”
Lower import offers have been withdrawn from the market following the implementation of BIS Certification mandate for PE imports. Despite a price hike by major domestic producers, buying activity remained steady in the local markets of India."
In India, Middle Eastern producers have offered their LDPE film grades at the USD 1090-1120/mt CFR levels for shipment in January 2024.
In Pakistan, LDPE prices were assessed at the USD 1080-1120/mt CFR levels, a rise of USD (+10/mt) from last week.
In Pakistan, overseas producers have offered their LDPE film grade at the USD 1080-1120/mt CFR levels for shipment in January 2024.
In Sri Lanka, LDPE prices were assessed at the USD 1050-1100/mt CFR levels, higher week on week by USD (+10/mt).
In Sri Lanka, overseas producers have offered their LDPE film grade at the USD 1050-1100/mt CFR levels for shipment in January 2024..
In Bangladesh, LDPE prices were assessed at the USD 1040-1080/mt CFR levels, a hike of USD (+20/mt) from the previous week.
In Bangladesh, overseas producers have offered their LDPE film grade at the USD 1040-1080/mt CFR levels for shipment in January 2024.
In Pakistan, Sri Lanka & Bangladesh, the purchase pace was stable amid limited spot offers from overseas suppliers. Meanwhile, a majority of buyers in the regions were reportedly monitoring current market trends in major Asian markets to strategize their future moves.
Feedstock ethylene prices on Tuesday were assessed at the USD 865-875/mt CFR South East Asia levels, while CFR North East Asia ethylene prices were assessed at the USD 870-880/mt levels, an increase of USD (+20/mt) from the previous week.
In plant news, Carmel Olefins has taken off stream its Low density polyethylene (LDPE) plant for maintenance on January 14, 2024. Further details on the duration of the shutdown could not be ascertained. Located at Haifa in Israel, the plant has a production capacity of 175,000 mt/year.
In other plant news, Rayong Olefins Co (ROC) has postponed the restart of its cracker for an unspecified period. The cracker was shut for maintenance in mid-November 2023 and was scheduled to resume operations in Q1 2024. Located at Map Ta Phut in Thailand, the cracker has an ethylene production capacity of 900,000 mt/year and propylene production capacity of 450,000 mt/year.
