A Chinese polyolefins producer contacted by SSESSMENTS.COM reported on revising down local prices to keep up with previous week’s market dynamics. As noted, the producer’s offers for local LLDPE Film C4 went down by CNY50/ton ($7/ton) compared to last week’s level. Similarly, local offers for PP Homo Raffia from the producer’s end also lowered between CNY100-125/ton ($14-18/ton) as compared to the same period.
At the moment, the producer is busy paying attention to the issue of the upcoming arrival of Iranian cargoes, SSESSMENTS.COM was told. Particularly addressed by the producer, by the time the delayed Iranian cargoes arrive in China market, supply in the domestic market will be ample, particularly for HDPE Injection. In fact, there is more supply for HDPE Injection in the domestic market recently as one of the local PE producers has resumed producing this grade.
Speaking of Iranian cargoes matter, the producer further added to SSESSMENTS.COM that if the cargoes are re-shipped from Malaysia to China; the shipping cost and demurrage will undoubtedly be much higher. As such, once the Iranian cargoes docked in China port, it will create a dilemma for traders since they may not be able to sell at higher prices, yet the cost is higher. Moreover, the producer explained that demurrage cost normally would be borne by the customers; still, it will also depend on the contract.
