The price of linear low density polyethylene, on a CFR Far East Asia basis, rose $53.82/mt or 4.5% month on month to average at $1,254.73/mt in July, mainly on higher crude oil and ethylene prices, Platts data showed.
The rise in the CFR Far East Asia high density polyethylene price over the same period was less, at 2.4%, with the average for July at $1,298.68/mt. Low density polyethylene gained $27.70/mt or 2.3% to average at $1,241.36/mt in July, according to Platts data.
Macroeconomic sentiment improved over July, boosting crude values -- September ICE Brent crude futures were $105.60/barrel at the Asian close of 4:30 pm Singapore time (0830 GMT) on July 31, up $12.59 or 13.5% from $93.01/b on the last trading day of June, June 29, according to Platts data.
Upstream, the FOB North Asia ethylene price gained $155.64/mt or 16.9% month on month to average at $1,076.50/mt, helping to raise PE prices.
The price increases for LDPE, LLDPE and HDPE in Asia came after a period of stable market activity in June, when plastics converters preferred to minimize buying resins due to weak downstream demand and restocking was carried out just to fulfill orders.
