HDPE, LLDPE, LDPE prices converging in China
Over the past few weeks, import prices for HDPE, LDPE and LLDPE film have begun to converge in China as per the pricing service of ChemOrbis. After trading at a premium over LDPE and LLDPE film since the end of the Chinese New Year holidays in February, HDPE film prices are now trading close to par with LDPE and LLDPE film.
Meanwhile, LDPE film prices, which have been trading at a discount against both LLDPE and HDPE film over the past year, are starting to close the gap with other PE products and even managed to gain some premium over HDPE film prices this week.
According to data from ChemOrbis Price Index, import HDPE film prices on a CFR China basis have been trading with a premium relative to LLDPE film prices since the middle of April. Over the next eight weeks, the premium on HDPE film relative to LLDPE film fluctuated between $15-60/ton, reaching its peak towards the end of May. Since reaching a high of $60/ton, the premium for HDPE film has been gradually declining and currently stands at less than $5/ton.
A similar trend has been in place in relative prices for HDPE and LDPE film. HDPE film prices carried a premium over LDPE film prices from the middle of 2012 until the current week, when LDPE film prices regained a premium of around $20/ton over HDPE film. In the preceding weeks, the premium for HDPE film over LDPE film had narrowed from around $25-55/ton in April and early May down to just $5-10/ton through the last week of May and the first two weeks of June.