Asian Polyethylene ethylene price

Asian PE buyers pause after ethylene price falls

Asian Polyethylene ethylene price

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.

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