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The LDPE film market in China has been escalating to multi-years high recently due to healthy demand amid limited supply stemming from couple of major shutdown in domestic market. However, market started to show some primitive signs of a slow down as buyers turned down offers for cargoes deemed for end of November shipment.

Cross-checking further on this issue, it is found that traders are running out of confidence for near to medium term outlook, especially when Lanzhou Petrochemical is ready to delivery cargoes after 50 days maintenance shutdown. A trader in Xiamen informed, “Our parcels from Lanzhou Petrochemical shall arrive in days and this would help to ease domestic supply tightness to certain extent. For this, market might see adjustment by second half of the month.”

In Northern China, where most agriculture film manufactures are located, players are very disappointed with the number of purchase inquiries they received these two days. A trader in Linyi said, “Our customers seems to have replenished sufficient material, hence show very little interest in making additional purchases after domestic supplier lifted prices by CNY850/ton ($126/ton) this week. There might be another round of purchasing from mulch sheet maker, we hope prices therefore will not drop too soon.”

In the import market, traders are not showing much interest for deep-seas cargoes, fearing mass arrival by end of December would pressurize prices. A market source reported, “We have suspended purchases for end of November to early December shipment cargoes, and only focus on prompt parcels at the moment. Falling futures market is pushing buyer away, if this condition persist, market might face correction soon.”

Import LDPE film to China currently stands at $1350-1440/ton CFR China, LC 0-90 days term while domestic prices are reported at CNY11400-13300/ton ($1441-1681/ton without VAT), EXW China, cash term.