Chinese players: Lengthy supply pressures HDPE injection market

It is reported that the Chinese HDPE injection market is currently under tremendous downward pressure due to lengthy supply condition, according to players in this market. In fact, comments about weak local demand for this grade has been pouring in in the past couple of months and this weeks, players started to blame the unscheduled switching in production at some Middle East and Iranian plants to be the cause.

A trader in Guangzhou talking about this issue, “The HDPE injection market is just so much different from the other PE grades when it comes to supply. Unplanned switching in production at some Iranian plants to make this grade is even worsening the condition when a large number of cargoes are already scheduled to arrive China main port this month. We think this is the reason why HDPE injection has been traded below $1000/t threshold for sometime now.”    

Another market source in Ningbo added, “During our visit to local trader’s warehouses last week, we see most of warehouse spaces are filled with Iranian and USA high MI HDPE injection pallets. Domestic demand for these cargoes are disappointed and recently traders are seeking for destinations to re-export.”

In the near-by Vietnam market, this week there are some Iranian HDPE injection cargoes being re-exported from China warehouse at $1050/t CIF Vietnam, LC AS term.

Import HDPE injection from various origins to China is recently stand at $ 970-980/t CFR China, LC 0-90 days term.

Kindly visit the Daily Price section for the latest import and local prices to/in China and Southeast Asia market.