Despite rising upstream crude costs, HDPE prices remained steady in the Asian area this week. In Far East Asia, HDPE film prices were assessed at USD 940-970/mt CFR, while HDPE blow molding prices were assessed at USD 890-930/mt CFR, both of which were unchanged from the previous week. HDPE injection prices were assessed at USD 860-890/mt CFR, while HDPE yarn prices were rated at USD 900-920/mt CFR, both of which remained constant week on week.
This week in China, PE import discussions were stable, with downstream demand remaining steady in a quiet season. Producers were working hard to get rid of their excess inventory before the New Year's holiday.
In Southeast Asia, HDPE film prices remained stable from the previous week at USD 950-980/mt CFR. HDPE BM prices remained steady week on week at USD 910-940/mt CFR levels. HDPE injection prices were evaluated at USD 900-940/mt CFR, while HDPE yarn prices were evaluated at USD 930-960/mt CFR, both unchanged from the previous week.
Although prices remained constant, there was a moderate increase in trading activity last week, though there was little progress in spot discussions due to a large number of market participants taking the year-end holiday break. Meanwhile, purchasers were seen lamenting the lower demand sentiments in the downstream segments as the New Year approached. Middle Eastern suppliers are expected to make additional bids next week. A few converters bought because of the unexpected jump in regional PE prices. Price increases are being driven by limited supplies from a few Saudi manufacturers who have been harmed by the ongoing Red Sea crisis, as well as the impending adoption of rigorous PE import limitations in Indonesia by early 2024.
In India, HDPE film prices were assessed at USD 970-990/mt CFR levels, while HDPE BM prices were assessed at USD 970-990/mt CFR levels, both of which remained constant week after week. HDPE injection prices were assessed at USD 950-990/mt CFR, while HDPE yarn prices were assessed at USD 960-980/mt CFR, both of which were unchanged from the previous week. According to a local industry source, "Reliance Industries Limited (RIL) has rolled over HDPE prices across all grades, wef December 21, 2023."
This week, prices in India were assessed flat. However, trading firms and converters were more eager to replenish their inventories as fears increased about potential price hikes caused by an increase in transportation and feedstock costs as a result of Red Sea tensions. Meanwhile, buyers in India and the rest of South Asia are unconcerned about anticipated shipping delays because ships travelling from the Middle East to South Asia do not need to cross the Red Sea.
"Buyers are reportedly less concerned than they were previously about the approaching January 5, 2024 deadline by which overseas producers have been mandated to obtain Bureau of Indian Standards (BIS) licencing for facilitating PE imports," the source added. The majority of key international producers have obtained the appropriate certifications, confirming that their exports meet BIS quality control standards. While a few producers attempted to raise prices by citing potential supply problems due to the imminent BIS quality control implementation, when purchasers would be compelled to procure cargoes from producers with the requisite licences, buyers were reportedly unaffected. This is because important overseas producers have secured the necessary certificates, removing concerns about anticipated supply interruptions."
HDPE yarn grade prices in Pakistan were assessed at USD 990-1010/mt CFR levels, while HDPE injection grade prices were assessed at USD 980-1010/mt CFR levels, both maintaining unchanged week on week. HDPE BM grade prices were assessed at USD 990-1030/mt CFR levels, while HDPE film prices were assessed at USD 990-1030/mt CFR levels, both of which were unchanged from the previous week.
HDPE film prices in Sri Lanka were assessed at USD 1000-1030/mt CFR levels, while HDPE BM prices were assessed at USD 1000-1030/mt CFR levels, both up revised by USD (+10/NC) week on week. HDPE injection grade prices were assessed at USD 990-1010/mt CFR, while HDPE yarn grade prices were rated at USD 1000-1020/mt CFR, both up USD (+10/NC) over the previous week.
HDPE BM prices in Bangladesh were assessed at USD 990-1010/mt CFR levels, while HDPE film prices were assessed at USD 990-1010/mt CFR levels, both of which rolled over week on week. HDPE injection grade prices were stable from last week at USD 980-1000/mt CFR levels, while HDPE yarn prices remained unchanged at USD 980-1000/mt CFR levels.
Market emotions were said to be calm in Pakistan, Sri Lanka, and Bangladesh. Meanwhile, the majority of market participants were said to be taking a wait-and-see strategy as they await new proposals from offshore suppliers for January shipment.
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On Tuesday, CFR South East Asia ethylene prices were judged flat at USD 845-885/mt, while CFR North East Asia ethylene prices were assessed flat at USD 855-865/mt, a week on week reduction of USD (-5/mt).
Sinopec Maoming Petrochemical has announced that its High density polyethylene (HDPE) unit will be shut down for maintenance in December 2023. Further information about the shutdown's duration could not be obtained. The HDPE unit, which is located in Maoming, Guangdong, China, has a production capacity of 400,000 mt/year.
In other plant news, Zhejiang Petrochemical has announced that it will close its High density polyethylene (HDPE) factory in mid-December 2023. The factory will be shut down for around ten days. The HDPE facility in China has a production capacity of 300,000 mt/year.