NEWS

HDPE displays firmer trend among PE products in global markets

25 May, 2018


In global PE markets, HDPE film has been displaying a relatively firm trend as better buying interest provided support for sellers on their pricing policies unlike LDPE and LLDPE. Limited supplies were cited as the main reason behind the better performance of HDPE. 

In China, lower LLDPE futures over the week overshadowed the recent rebound in spot ethylene prices in Asia. LDPE was deemed as the weakest product, while supply from the Middle East was considered slightly limited for HDPE film which provided some support for this product. For LDPE and LLDPE, meanwhile, supply was considered more than sufficient. 

In Southeast Asia, Middle Eastern suppliers initially approached the market with mostly higher June offers compared to May. Sellers cited strong upstream costs and slightly limited HDPE supplies as the main reason behind their hikes, although they were met with buyers’ resistance. 

A Malaysian PE producer issued $20/ton increases for June to the region. A source from the producer noted, “Demand may not be strong in the near term as Malaysia and Indonesia will be quiet due to Ramadan. However, our Chinese customers are interested in securing HDPE film nowadays.”

In Turkey, PE prices followed a stable to softer trend during May along with discouraging demand that defied seasonal factors due to economic concerns boosted by lower Turkish Lira. Yet, HDPE film market saw rollovers passing on import done deals while the local market even edged up owing to better demand compared to LDPE and LLDPE. A Middle Eastern producer reported, “We issued slight increases on our HDPE film prices for end May, while keeping LDPE and LLDPE flat.” 

Similarly, HDPE film prices in Italy managed to record €10-20/ton hikes for May in contrast to slightly lower LDPE and LLDPE deals due to moderate activity and ample supplies for those products. Indeed, LDPE and LLDPE offers were quoted even below the May ethylene settlement. In Northwest Europe, mostly rollovers passed on LDPE and LLDPE transactions, whereas HDPE grades posted small increases, similarly.

 

Contributed by:
https://www.chemorbis.com/en/

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