On account of falling import profit, China's PE import volume is projected to total 3284,500 tonnes or so in the first quarter of 2024, down by 9.06% to month on month compared to the 3,611,552 tonnes of the fourth quarter of 2023, according to the General Administration of Customs of the People's Republic of China (GACC).
Source: GACC and OilChem
Under the tensions in the Red Sea region, the tight supply and bullish sentiment of foreign producers have widened the price spread between foreign PE prices and China's PE prices, and sliding import profit dampens the domestic buying intention of imported PE resources.
Source: OilChem
In the face of high feedstock prices, though PE demand is estimated to improve in the upcoming traditional peak season in March and April, the high inventory will curb the price appreciation in domestic market, and China's PE prices will constantly stay at a relatively low level in global market in a certain time.
Written by Ariel Guo, gq@oilchem.net
Edited by Navy Liu, liuchuanjun@mysteel.com