Low density polyethylene (LDPE) quotes for delivery to China over the past week rose to $ 1030-1050 / t (subject to CFR China) from 1000-1030 / t (CFR China) a week earlier, reaching a maximum since May 2019 on August 27 , according to Argus Media.
The rise in prices for polyethylene has been noted since the end of June amid a decrease in product inventories in the country due to delays in sea shipments of the product from Iran, which is the largest supplier of LDPE and high density polyethylene (HDPE) to China.
Meanwhile, traders are looking forward to increasing interest in LDPE in the Chinese market ahead of the long weekend to mark China’s Founding Day in October. Chinese domestic LDPE prices reached 9,700-9,800 yuan / tonne (EX-Works China) on August 27, the highest since October 2018.
The shortage of capacity for the production of LDPE in China will remain, market participants say. The companies are putting into operation new plants for the production of PE, but they have the capacity to produce only HDPE and linear low density polyethylene (LLDPE).
For example, the US-China joint venture Bora LyondellBasell in mid-August began commissioning at its plant in Panjing (Liaoning province) for the production of LLDPE with a capacity of 450 thousand tons / year and HDPE with a capacity of 350 thousand tons / year.