This week, Low density polyethylene prices rose in Southeast Asia and South Asia, while they quoted flat in China.
An industry source in Asia wishing to remain unidentified informed a Polymerupdate team member, “Upstream energy prices continue to remain on the higher side. Meanwhile, continually surging ocean freight rates have prompted Asian producers to raise their offer levels even as buyers are unwilling to commit to transact at the quoted levels, mirroring weak end-product demand.”
The source added, “Delayed shipments stemming from lack of container availability and firmer import offers from overseas suppliers further pulled prices higher in the region.”
In Southeast Asia, LDPE film grade prices were assessed at the USD 1130-1170/mt CFR levels, a week on week rise of USD (+20/mt).
In Vietnam, a Saudi Arabian producer has offered its LDPE film grade at the USD 1170/mt CFR levels for shipment in June 2024. A producer from the Middle East has offered its LDPE film grade at the USD 1130/mt CFR levels for shipment in June 2024.
In Southeast Asia, regional converters were seen holding limited LDPE inventories for June consumption while producers were prompted to keep their offers at elevated levels as planned plant maintenance turnarounds in the region led to a contraction in allocation of spot cargoes. The tight supply situation was further compounded with delayed shipments and order logjams. Nonetheless, spot discussions for June shipments were in progress with most deals likely to be completed over the next few days.
In India, LDPE prices were assessed at the USD 1190-1220/mt CFR levels, an increase of USD (+10/mt) from last week.
In India, Middle Eastern producers have offered their LDPE film grades in the range of USD 1190-1220/mt CFR levels for shipment in June 2024.
In India, the purchase pulse was weak with most of the buyers staying on the sidelines. Import offers were limited owing to logistical bottlenecks caused by a scarcity of container space. Hence, buyers were seen opting to secure their requirements from local sources. Domestic producers are anticipated to hike prices in the coming days.
In Pakistan, LDPE prices were assessed at the USD 1130-1160/mt CFR levels, a week on week gain of USD (+10/mt).
In Pakistan, overseas suppliers have offered their LDPE film grades in the range of USD 1130-1160/mt CFR levels for shipment in June 2024.
In Sri Lanka, LDPE prices were assessed at the USD 1170-1200/mt CFR levels, up USD (+10/+20/mt) from last week.
In Sri Lanka, overseas producers have offered their LDPE film grades in the range of USD 1170-1200/mt CFR levels for shipment in June 2024.
In Bangladesh, LDPE prices were assessed at the USD 1160-1180/mt CFR levels, a week on week rise of USD (+10/mt).
In Bangladesh, overseas suppliers have offered their LDPE film grades in the range of USD 1160-1180/mt CFR levels for shipment in June 2024.
In Pakistan, Sri Lanka and Bangladesh, buying was reported to be sluggish. Though producers were offering material at higher prices, buyers were holding back against the price rise. Meanwhile, market participants have been struggling with a liquidity crunch in Asia with buyers exercising a cautious approach while replenishing inventories.
Meanwhile in Far East Asia, LDPE film grade prices were assessed at the USD 1080-1100/mt CFR levels, unchanged from the previous week.
In China, producers are not under undue stress to lower their offers and maintain prices at elevated levels on the back of higher upstream energy costs and surging freight rates.
In feedstock news, CFR South East Asia ethylene prices were assessed at the USD 950-960/mt levels while CFR North East Asia feedstock ethylene prices were assessed at the USD 850-860/mt levels, both unchanged week on week.
In plant news, CNOOC and Shell Petrochemicals (CSPC) has restarted its Low density polyethylene (LDPE) unit in mid-May 2024. The unit was shut for maintenance on May 20, 2024. Located in Guangdong, China, the LDPE unit has a production capacity of 270,000 mt/year.
