PE demand has remained sluggish in the Chinese market in view of ample stocks. Weaker demand from Southeast Asian buyers during Ramadan has prompted the diversion of PE cargoes or even a slowdown in exports. Amid low buying interest, this has created downward pressure on prices. Adding to the bearish sentiments, LLDPE futures have also softened recently, reflecting concerns over demand outlook and a growing supply overhang.

Tepid demand has pushed film HDPE prices $15/t down to $950—1,000/t CFR China this week. C4-LLDPE ones have decreased by $5/t to $900—960/t CFR China. The Saudi Arabian producer SABIC has lifted the price for film HDPE and film LDPE by $20/t to $1,010/t CFR China and $1,080/t CFR China, respectively, over the week while reducing that for C4-LLDPE by $30/t to $970/t CFR China. The Qatari PE maker QAPCO has put the commodity on the Chinese market, quoting film LDPE at $1,045/t CFR China, C4-LLDPE at $955/t CFR China and film HDPE at $940/t CFR China. The other grades of the polymer have held their value. The market players has rejected the price increases. The most actively traded LLDPE futures for May delivery have gone CNY 56/t (almost $8/t) down week on week to CNY 8,207/t (almost $1,135/t) EXW on China’s Dalian Commodity Exchange this Thursday.

Market players have grim outlook for PE demand in China. Even with the high season approaching, they it consider a rush on it improbable. Only the restocking will take place. The material prices may hold steady or go $5—10/t down on weak demand and plentiful supply.