China PE Market Price (28 Oct 2009)

A trader offers Southeast Asian LDPE film CFR Shanghai, China, subject to 6.5% customs duty, cash at $1320/ton

A trader sold American LLDPE c4 film CFR Shanghai, China, subject to 6.5% customs duty, cash at $1230-1240/ton

A trader reported seeing good demand from buyers this week, especially for LDPE and LLDPE film. He attributes the reason for better LDPE and LLDPE demand to limited availability for these products. The seller lifted their prices by $30-40/ton when compared to last week and managed to conclude some deals at the above mentioned prices for LLDPE film. "However, due to our limited stocks, we cannot accept even firm counter bids below $1300/ton for LDPE film," he highlights. The seller acts cautiously in the market and does not want to build high stocks at the current high prices. Therefore, they are not planning to sell in large quantities considering their high replenishment costs and their uncertainty over the direction of the market.