Petrotahlil :An agent of a major Saudi Arabian producer reported that their supplier announced its September PE offers to China with up to triple-digit drops from August while PP offers were stable to slightly lower.
The major producer cut its September PE offers by $80/ton for LDPE film, by $70/ton for LLDPE C4 film from last month while HDPE offers witnessed larger decreases of $100/ton for blow molding and $110-120/ton for film grade. The recent offers currently stand at $900/ton for LDPE film, at $830/ton for LLDPE C4 film, at $890/ton for HDPE film blow molding, all on CIF China, cash basis.
“Import prices in China are plunging due to the re-escalation of trade tensions. The sharp depreciation of yuan against the US dollar hurt demand for import cargoes. Plus, local and import cargoes are close to each other, pushing buyers to prefer local cargoes. Although we expect buying interest for PP and PE to improve in the last quarter, we think that a possible rebound will still not be strong," the agent opined.
As for PP, the producer’s new PP offers were stable to $10/ton lower from August at $1040/ton for homo-PP raffia with the same terms. The agent also noted that demand for PP is relatively better than PE.
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