Print

The import LLDPE film market in China has witnessed the steepest slump over the past couple of weeks and the trend persists this week despite the fact the local ground is recovering. Earlier this week, dutiable cargoes originated from Middle East and India briefly breached below the $950/ton threshold, to $930-940/ton CFR China, LC AS term prompted fear that market might soon touch the $900/ton mark. 

As explained earlier, ample supply coupled with persistently sluggish demand and the rapid depreciation of the Chinese Yuan against the US dollar have forced overseas sellers to adopt aggressive price setting to deplete inventories ahead of the long Ramadan holiday. 

With such development, Southeast Asian buyers technically withdraw to the sideline with the expectation that import offers for LLDPE film would soon follow the trend in the nearby China market.

At the time this report is published, buyers in Indonesia, Malaysia and Vietnam reported having received offers for USA LLDPE film at $980/ton CIF, LC AS term but very limited interest in proceeding with purchases. A regional trader offers the cargoes said, “Some of our regular customers are asking for up to $50/ton reduction from the initial price list. Market is very sluggish.”

Meanwhile, deals for Qatari LLDPE film have reached $1000/ton mark in Vietnam with a buyer said, “It is very likely that prices could breach below this benchmark in the coming week as buyers continue to show reluctance in making fresh buys.”   

May and June are known as the traditional off-peak season for the agriculture and packaging sector and trading activities in Indonesia and Malaysia might soon retreat in the coming days as the market enters the Ramadan holiday. With a comfortable supply available in the market, buyers are having an upper hand in negotiating for discounts. 

At the time is report is published, import LLDPE film to Southeast Asia stands in the range $980-1040/ton CIF, LC AS. 

Country
China  Indonesia  Malaysia  Vietnam