PE CFR China market may rebound before the Spring Festival

PE CFR China market was in narrow range-bound since November, market price waved narrowly and fluctuated in the range of $10/mt. Even the market trading atmosphere was mild on the whole. The whole market was bearish with no negative and positive news, market participators offered accordingly. Almost all products remained steady except for the LLDPE, which had rebounded higher in December as supply was limited. In the late market, PE CFR China market may rebound higher slightly in end-Dec and early-Jan.

First of all, RMB market price was higher than the PE CFR China market.

Take 218WJ and 2018H as an example, these were mainstream LLDPE in the Middle East and market price of these sources were relatively high. However, RMB market price was still higher although only 200yuan/mt higher than the PE CFR China market price. If take some low-end and low-price goods for example, RMB market price was much higher. Moreover, there was signs that the RMB market had stopped falling, which supported the PE CFR China market modestly.