Import mPE from S. Asia witness reduction in China

After several weeks of following stable to firm trend, a major Southeast Asian maker decided to lower their offers for metallocene PE (mPE) cargoes today by approximate $40/ton compared to early this week. Players blamed mounting inventories pressure stemming from slow demand and excess quantity from a financial troubled distributor.

A trader received new price list at $1330-1350/ton CFR China said, “Our supplier is requesting us to take up to 50% higher than regular allocation and this is very tough especially demand condition is not very encouraging at the moment.”

Another trader added, “Most cargoes are already at the main port and we are currently waiting for further notice from our principal. We were informed that our allocation this month would be higher due to excess supply from other sources. We think this might cause a temporary disruption in the market, as buyers would monitor further development before commit any fresh purchases.”

Import mPE to China is currently reported at $1330-1390/ton CFR China, LC AS term.