Prices of imported PE have grown in China against the background of the forthcoming closures for the repair of production facilities

Prices of imported polyethylene (PE) in China increased this week, for the first time after several weeks of decline, ICIS reports with reference to market participants.

According to ICIS, on April 4, prices for film linear polyethylene (LLDPE) were USD1,130-1,160 per tonne, CFR China, which is USD15 per tonne compared to March 30.

The growth of domestic prices and the delay in supply contributed to an increase in import prices. So, on April 3, domestic LDL prices in East China amounted to CNY9,300-9,550 per tonne, EXWH, which is CNY1,050 per ton higher compared to March 30.

Some market participants believed that the planned repair of several Chinese manufacturers in April will reduce the supply and thus ensure a further increase in PE prices.

Shaanxi Shenmu Chemical planned to close its production of LDPE capacity of 300 thousand tons per year, located in Shaanxi, in early April for repairs within 20 days.

Zhenhai Refining and Petrochemical planned to close the HDPE / LDL capacity of 500 thousand tons per year in Zhejiang in late April for a 45-day repair.

Zhongtian Hechuang Chemical planned to close its production of LDPE with a capacity of 370,000 tons per year, located in Inner Mongolia, in early April for a 10-day repair.

According to the Price Review of ICIS-MRC, on the Russian market, according to the company’s customers, Nizhnekamskneftekhim plans to resume production of HDPE not earlier than the second half of April. Now the company is working on LDL. The annual production capacity is 210 thousand tons.