South China LDPE market supported by low inventory

Petrotahlil - Low density polyethylene (LDPE) prices in the south China market are being supported by low inventory from producers, market sources said on Thursday.

Traders’ offers in south China on Thursday were at yuan (CNY) 8,500/tonne, CNY200/tonne higher than LDPE prices in east China.

Our inventory has been low recently as Maoming Petrochemical’s LDPE units are not operating normally. Meanwhile, its 120,000 tonne/year LDPE unit is expected to shut today,” one producer from Sinopec said.

Sinopec’s offers stood at CNY8,550/tonne ($1,237/tonne) EXW (ex-works), stable from the previous day.

“We can’t get cargoes from Sinopec in time due to their tight supply,” one trader said.