POLYMERS - HDPE

HDPE prices stagnated at US$1665/MT in Asia in the week February 11, 2008. Markets saw limited movement due to suspension of trading in China on account of the Lunar New Year holidays. Almost all the PE markets of China remained closed till February 11 as the domestic PE makers suspended sales from their branch offices. Before China went on its week long holiday, heavy snowfall in various regions had created an obstacle for scheduled delivery. These two factors have led to accumulation of inventory with producers. If transportation does not smoothen, prices could see an upward movement in those areas in China with short supply and a downtrend in the abundantly supplied regions.