China China Petroleum & Chemical Corp. (Sinopec), the largest oil refining company in Asia, announced an increase in the price offers of high-pressure polyethylene (LDPE) for the southern region of China amid a reduction in material stocks, a company source told ICIS.

So, on April 9, Sinopec raised its LDPE prices by 50-100 yuan (CNY) or USD7.4-14.9 per ton in relation to the level of the previous day to the level of CNY9 200-9 250 (USD1 369-1 376.5) per ton, ex-works (ex-works), said a source in the company.

Thus, the latest price offers of the company’s LDPE at CNY300 per ton are higher than at the end of March.

The material manufacturers in the region have already increased their price proposals for the material three times in April due to a decrease in pressure from the excess supply.

In the south of China, traders offered spot LDPE on the market at a price of CNY9 300 per ton.

“End users buy batches of material at high prices for current needs, which may limit the growth of quotations,” said one trader.

According to the ICIS-MRC Price Review, an excess of supply remains on the Russian market for LDPE. The time constraints in shipments from Ufaorgsintez and Angarsk RFP, as well as the forthcoming stop on the prevention of a part of Kazanorgsintez’s capacities, did not help to balance the market. The exception was only the 108th polyethylene, this material began to gradually go up from last week. But here, too, there is a certain resistance to the rise in prices on the part of consumers.

Sinopec Corp. is one of the world’s largest integrated energy and chemical companies. Business Sinopec Corp. includes oil and gas exploration, extraction and transportation of oil and gas, oil refining, petrochemical production, the production of mineral fertilizers and other chemical products. In terms of refining capacity, Sinopec Corp. ranks second in the world, in terms of ethylene capacity – fourth.

(USD1 = CNY6.72)