MOSCOW (MRC) -- Low buying activity, due to the state holidays in China and decline in oil quotations, has resulted in a slight reduction of polyethylene prices in Asia, report MRC analysts.
Last week, there was a minor price fall in the Asian PE market. Low buying activity in the region was the main reason of the decline in prices. Chinese companies practically refused from purchasing polyethylene in anticipation of the weekly state holidays which will begin from 1 October. South-Eastern companies also decided to take a break expecting the situation with the price trend to become clear after the holidays in China.
Also, declining oil quotations have cooled the interest of buyers from China and South-Eastern Asia in purchasing PE. But a major decline in PE prices was avoided due to stable ethylene prices in the region.
Oil prices are still the determining factor in the price formation on sluggish demand. Also, the launches of new plants in China in the second half of the year cause serious concerns regarding the rise in prices in the future.
Last week, LDPE prices remained intact and were in the range of USD1,310-1,380/tonne, CFR. HDPE prices dropped by USD10-40/tonne depending on the grade. Deals were concluded in the range of USD1,300-1,370/tonne, CFR.
MRC