Asian Polyethylene ethylene price
Asian PE buyers pause after ethylene price falls
Asian polyethylene (PE) buyers have paused after falls in the feedstock ethylene market, preferring to take a cautious approach.
Regional producers are more bullish and said a 3pc value-added tax cut to 13pc, effective 1 April, will boost domestic demand.
Ethylene prices are dipping below $1,000/t on a cfr northeast Asia basis, after hitting near $1,200/t in mid-February. Ethylene prices, which have been volatile since late February, were assessed at $990-1,010/t cfr northeast Asia yesterday, according to Argus data.
Polyethylene (PE) demand had been relatively sluggish for weeks. Linear low-density polyethylene film prices were at $1,020-1,050/t cfr China, with Middle East offers into southeast Asia at $1,050/t cfr.
Offers for low-density polyethylene (LDPE) are rising in Asia because of supply bottlenecks in the Middle East and India. LDPE film offers were at $1,050-1,080/t cfr China and $1,060-1,080/t cfr southeast Asia.
Buying interest is capped until a clearer direction for the upstream ethylene market emerges. Asian buyers preferred to rely on their existing stocks bought a few weeks ago to keep their conversion units running.
PE and polypropylene inventories at China’s Sinopec and PetroChina slightly rebounded to 870,000t from last week’s 860,000t.