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Import LDPE prices losing their premium over HDPE in China

https://www.chemnet.com   Oct 31,2011 CHEMORBIS
Steadily declining import LDPE film prices in the Chinese market have brought the premium for LDPE over HDPE film to its lowest level since the closing weeks of 2009. HDPE film prices have posted relatively smaller decreases than LDPE or LLDPE film prices over the past several weeks as HDPE supply has not been as loose as LDPE or LLDPE supply in the country. Chinese traders had built up some LDPE and LLDPE film stocks in August and September in anticipation of the high season for agricultural film and found themselves overstocked for these products given generally disappointing post-holiday demand from Chinese buyers.

From October 2010 to mid-April 2011, spot LDPE film imports carried a premium of at least $200/ton over spot HDPE film imports on a CFR China, cash basis. The highest premium recorded for LDPE over HDPE film for the past year was seen in late December 2010 at slightly more than $280/ton. The premium for LDPE film over HDPE film briefly returned to the $200/ton threshold in late May and continued to remain between $100-200/ton from the start of June to the end of September and the onset of the National Day holidays.

In the weeks since the holidays, the premium for LDPE film over HDPE has sunk below the $100/ton threshold for the first time since late December 2009. The premium sunk as low as $60/ton last week before moving back up to around $80/ton this week.


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