Softening in China’s local PE market curbs demand for imports

Petrotahlil:

Softening in China’s local PE market curbs demand for imports

• Import PE mostly stable on week 

• Local LL, HD hit almost 2-year low 

• Major Chinese producers’ inventories still high 

• LLDPE futures down 4% from early March 

• Spot ethylene turns soft on fading demand

• Import dutiable PE ($/ton): HDPE film 1090-1150 | LDPE film 1040-1060 | LLDPE film 1040-1060 CIF

PE remains stable to firm in SEA despite lack of bids

• April offers from Mid-East up $10-20 

• Local PE flat/higher for April in Malaysia

• Thai buyers resist PE hikes ahead of Songkran 

• Eyes on softening trend in China’s local market 

• Spot ethylene down on week

• Mid-Eastern PE ($/ton): HDPE film 1090-1120 | LDPE film 1070-1090 | LLDPE film 1050-1070 CIF 

• US PE ($/ton): HDPE film 1080 | LDPE film 1020-1030 | LLDPE film 1000-1010 CIF

Stable to firmer outlook dominates European PE market for April

• March PE deals concluded €30 higher 

• April C2 awaited €10-30 up on rising costs 

• Players anticipate stable to firmer PE outlook 

• Flimsy demand might keep in check PE hikes 

• PE fundamentals remain weak

• Local spot (€/ton): LDPE film 1040-1120| LLDPE film 1010-1080 | HDPE film, b/m 1120-1200 FD | HDPE inj. 1120-1190 FD

Firmer expectations remain in place for April C2 in Italy's PE market

• March spot business fully wrapped up €30 higher 

• Monthly PE contracts settle with hikes of up to €50 

• April PE outlook remains stable to firm 

• C2 awaited with €10-30 increases for April on rising costs 

• Subdued demand persists amid ample supply

• Local spot (€/ton): LDPE film 1030-1100 | LLDPE film 1000-1080 | HDPE film, b/m 1120-1200 FD

Sentiment fails improve in Middle Eastern PE markets

• March deals concluded stable from initial levels 

• Overall supplies still comfortable, demand remains lackluster 

• Sellers hope to see improvement in demand before Ramadan

• Local PE in S.Arabia ($/ton): LDPE 1020 | LLDPE 1010 | HDPE 1069-1070 FD 

• Import PE in UAE ($/ton): LDPE 1090-1100 | LLDPE 1050-1080| HDPE 1120-1150 CIF

PE ends March on firm note with elections on corner in Turkey

• Sellers voice slightly firmer goals for April 

• Theoretical netback to China supports PE 

• Growing parity concerns push buyers to sidelines 

• China faces weaker PE trend, Europe waits for April C2

• US ($/ton): LDPE 1020-1040 | LLDPE 1010-1030 | HDPE film 1090-1100 CIF 

• Mid-East ($/ton): LDPE 1030-1050 | LLDPE 1010-1040 | HDPE film 1080-1120 CIF 

• Local ($/ton): LDPE 1415-1450 | LLDPE 1370-1420 | HDPE film 1420-1480 inc VAT

Will African PE markets see recovery in April?

• Markets quieten down as March deals wrap up 

• Long supplies add to softer expectations 

• Prices remain flat from initial levels

• Imports in Nigeria ($/ton): LDPE 1080-1130 | LLDPE 1030 | HDPE 1170 CFR 

• Imports in Kenya ($/ton): LDPE 1100 | HDPE 1130-1180 CFR

Egypt’s PE market stuck between firmer costs and bearish demand

• Import PE offers unchanged 

• Local PE prices stable to EGP500 softer 

• Tight liquidity, ample supply weigh on domestic market 

• Firming costs shape April outlook for import prices

• Import PE ($/ton): HDPE 1100-1190 | LDPE 1010-1070 | LLDPE 908-1030 CIF