HDPE supply tightness might ease by 2H July: Chinese traders

Over the past one month, Chinese players have been reporting an apparent tightness in HDPE supply, especially for Middle Eastern origins which many players attributed to the delayed of shipment during the Ramadan season. This has pushed import HDPE prices to the country higher amid traditional slow season. However, this condition is expected to improve toward second half of July 2016, as Middle Eastern suppliers resume operation after the long holidays.

A trader in Shanghai informed, “We have a considerable quantity of material to arrive end of this month and with the current future trading, we think market might not sustain the firming trend in the near term.”

Another trader in Guangdong added, “Our Iranian HDPE film cargoes are also due to arrive soon, which we think might relief market from the current tightness. However, most of our regular buyers have withdrawn from the market waiting to see further development before making purchases.”