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Tight supply condition has supported the import LDPE film market in China from the beginning of April to mid of May despite the fact that its peer - LLDPE film has been softening beforehand. 

However, the market is changing quickly and just in a matter of one week, import LDPE film to China plunged to the similar level with LLDPE film, shredding more than $100/ton in value along the way.    

It is reported that major Thailand producer is not having allocation at the moment, as the technical issues remain unsolved at the plant. Meanwhile, two other Saudi Arabia makers also claimed a lack of supply for LDPE film.

“Even without the supply from these three major producers, the market is still going lower thanks to the widely available of irregular materials,” a market source said. 

In fact, Brazilian LDPE film emerges at $920/ton CFR China term while Iran, Russian and Indian materials are all below the $1000/ton mark at the time this report is published. 

Sources are not very optimistic about the near-term market outlook and very few players have expressed the expectation that prices are heading for stabilisation. In contrast, the concern is that more price cuts could emerge in the coming week as demand is ebbing across the region. 

With both LLDPE and LDPE film have plunged steeply to the multi-year low levels, buyers started asking the question if the HDPE film market could follow suit.     

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China