الجبل
25-06-2007, Mon 10:10 PM
JULY TO SEE ACTIVE DEMAND FOR LLDPE IN CHINA
Asian LLDPE markets this week were pegged mostly stable although sellers continued to pursue hikes for July owing to the approaching demand season for agricultural film applications in China.
Offers to China range from USD 1330/mt CFR to USD 1340/mt CFR for July. There is talk about offers at the USD 1320/mt CFR mark but these are hard to come by these days. Despite soft ethylene feedstock prices, sellers are able to defend their offers firm owing to good demand for LLDPE in the region. Cues from outside China are also bullish with LLDPE heard sold into parts of South Asia at above the USD 1370/mt CFR to USD 1380/mt CFR levels. Availability of LLDPE is not ample and sellers are therefore pursuing sharper hikes for July with one maker heard already indicating offers to parts of South Asia at above the USD 1400/mt CFR mark.
Strength in global energy rates and the soon to begin robust season for agricultural film applications are keeping us interested in building on our current LLDPE stocks. One traders we spoke to is presently locked in negotiations for an early July delivery with a Saudi Arabian based producer in the hope to conclude the transaction at the start of next week.
In production news, Thai producer Siam Cement was reportedly running its 300 kt/annum LLDPE unit located in Map Ta Phut and 100% capacity rates.
Asian LLDPE markets this week were pegged mostly stable although sellers continued to pursue hikes for July owing to the approaching demand season for agricultural film applications in China.
Offers to China range from USD 1330/mt CFR to USD 1340/mt CFR for July. There is talk about offers at the USD 1320/mt CFR mark but these are hard to come by these days. Despite soft ethylene feedstock prices, sellers are able to defend their offers firm owing to good demand for LLDPE in the region. Cues from outside China are also bullish with LLDPE heard sold into parts of South Asia at above the USD 1370/mt CFR to USD 1380/mt CFR levels. Availability of LLDPE is not ample and sellers are therefore pursuing sharper hikes for July with one maker heard already indicating offers to parts of South Asia at above the USD 1400/mt CFR mark.
Strength in global energy rates and the soon to begin robust season for agricultural film applications are keeping us interested in building on our current LLDPE stocks. One traders we spoke to is presently locked in negotiations for an early July delivery with a Saudi Arabian based producer in the hope to conclude the transaction at the start of next week.
In production news, Thai producer Siam Cement was reportedly running its 300 kt/annum LLDPE unit located in Map Ta Phut and 100% capacity rates.