Petrotahlil - By late June, vessels with Iranian PE cargoes, mainly HDPE and LDPE grades, were prevented from entering at Chinese ports. This was due to an ongoing discussion between the Iranian shipping company and China amid the impacts of the US sanctions.
Following the delays, LDPE, LLDPE and HDPE prices on CIF China basis reached multi-month highs in mid-July, according to the weekly average data obtained from ChemOrbis Price Index.
The aforementioned cargoes, which were due to arrive in the country by May, were reportedly diverted to a port in Malaysia in late July and after a change of ship, they have returned to China.
This week, a Chinese trader has said, “We heard that after these vessels were changed into ‘non-Iranian’ shipments, they were able to be unloaded at a Chinese port. This was only applicable for two shipments while the situation for the remaining shipments remained unsolved.”
Iran is the main exporter of LDPE to China and the second biggest HDPE supplier following Saudi Arabia.
Sentiment in China’s PE market is still supported by the ongoing tightness coupled with rising Dalian futures despite slow demand.
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Source : ChemOrbis