Chinese players: LLDPE film demand shows signs of picking up

Chinese traders, on the first trading day of the week reported seeing some early signs of a pick up in LLDPE film demand as converters in the agricultural film sector starts replenishing inventories ahead of the traditional high demand season. Though purchasing activities are not as strong to support significant price increment, most sellers are expressing positive expectation in the near term.

A trader sold local LLDPE film cargoes at CNY9200 ($1175/ton without VAT) EXW China, cash term said, “Most activities are limited to domestic ground at the moment, and buyers are only accepting prices at the lower end of the overall price range. However, we do expect better condition in the coming days, as most converters were holding minimal inventories on hand and they need to replenish to maintain stock levels.”

Another sellers added, “We visited our regular buyers and good news is that most have lifted operation rate to around 60% by now. Together with firm futures market, we do have positive expectation for the near term outlook.”

Domestic LLDPE film in China is now reported at CNY9050-9400/t including VAT ($$1168-1214/t excluding VAT), ex-warehouses basis.