Prices for imported black pipe polyethylene (PE 100) for shipments in China fell in June amid weakening consumer sentiment, ICIS reported, citing market participants.
Domestic prices of black PE 100 in China were at the level of CNY9 350 per ton, EXW, which is equivalent to the import price of about USD1 124 per ton.
New offers of black PE 100 from the Middle East for June were at the level of USD1 260–1 300 per ton, CFR China. Despite the decrease in price offers by about USD50 per ton compared to the level of May prices.
According to the ICIS-MRC Price Review, since the middle of May, many sellers have sold off all their stocks on the natural pipe HDPE market since mid-May, and there are problems with their completion in June. In particular, Gazprom neftekhim Salavat does not plan in June the operating time of this PE. Turkmen HDPE sellers do not have an understanding of the timing of new deliveries, since the local manufacturer works intermittently.
However, despite these factors, there is no hype in the market. Many pipe manufacturers have significant payables, and in fact they do not have the financial capacity to generate additional reserves.