Domestic spot prices for blow molded low-density polyethylene (HDPE) in South China have been rising since the beginning of this month amid a limited supply, ICIS sources told the market.

According to ICIS, on November 7, material prices in the region were 11,200 yuan (CNY) per tonne or USD1,689 per tonne, which is CNY75 per ton higher than the previous day’s level and 3.2% higher compared to the price level for Nov. 1.

A major Chinese producer of petrochemical products – PetroChina – will not produce blown PE grades in November, and Maoming Petrochemical will switch to the production of HDPE film instead of blowing because of the absence of a catalyst.

According to the trader, the supply of material in the domestic market is low, and this will contribute to the price increase.

The Chinese petrochemical giant Sinopec offers blowing HDPE at CNY11,350 (USD1,712) per tonne, EXW (ex-factory), a source in the company said.

According to the Price Review of ICIS-MRC, in the Russian market in the segment of film HDPE there is an excess of supply, while demand contracted by November. Against this background, local producers went to lower prices. In the markets of blow molded and injection molded HDPE in Russia, the situation is more stable, there is no excess supply, and in some positions manufacturers have been able to roll over October prices for the current month.