Major Chinese petrochemical producer Sinopec Corp cut its polyethylene offers by Yuan 100-500/mt ($16-83/mt) this week, amid pressure from mounting stocks, a company source said Wednesday.
In eastern China, Sinopec trimmed its high density polyethylene offers by Yuan 100/mt to Yuan 12,100/mt ex-works basis, slashed its linear low density PE offers by Yuan 350/mt to Yuan 10,850/mt and cut its low density PE offers by Yuan 500/mt to Yuan 11,800/mt, ex-works basis.
Downstream demand had improved marginally after the Lunar New Year holidays but combined stocks held by local producers including Sinopec and PetroChina were hovering at exceptionally high levels of 1.1 million-1.2 million mt, compared with 800,000 mt in the same period last year.
The local producer was considering a cut in run rates at its production sites across China, but had not yet reached a decision on the matter, the source added.
Source: Platts.com
