Traders turned cautious on US polyethylene exports due to too many unknowns going forward, industry sources said Tuesday.
"If I can't move it (back-to-back) I'm not going to buy it," a trader said.
There were offers of LLDPE at 60 ($1,323/mt) and 61 cents/lb in railcars this week but without buyers on the other side, traders polled said they would not take a long position at that level.
Earlier in December, traders said there was no LLDPE available at under 64 cents/lb in railcars.
One trader said 60 cents/lb FAS Houston in bags would be workable, which meant the above offers were about 2.5 cents/lb too high.
"I can sell LLDPE at 65 cents/lb ($1,433/mt) CFR South America," another trader said of PE sourced from outside the Americas, and as a reason not to buy from the US.
There was the feeling among several traders, however, that PE prices may very well increase in January due to the relatively high crude oil price, but with uncertainties of demand in China and the volatility of crude oil; they simply preferred to take a "wait and see" position rather than buy and hope international markets go up.
There was a similar outlook for HDPE blow molding where 58 cents/lb in railcars was available but traders were more comfortable buying at or under 56 cents/lb.
"Prices cannot keep going up and that's what they've been doing for the past 5 months," a trader said on his lack of confidence that prices would maintain their bullish trend in January.
"If I can't move it (back-to-back) I'm not going to buy it," a trader said.
There were offers of LLDPE at 60 ($1,323/mt) and 61 cents/lb in railcars this week but without buyers on the other side, traders polled said they would not take a long position at that level.
Earlier in December, traders said there was no LLDPE available at under 64 cents/lb in railcars.
One trader said 60 cents/lb FAS Houston in bags would be workable, which meant the above offers were about 2.5 cents/lb too high.
"I can sell LLDPE at 65 cents/lb ($1,433/mt) CFR South America," another trader said of PE sourced from outside the Americas, and as a reason not to buy from the US.
There was the feeling among several traders, however, that PE prices may very well increase in January due to the relatively high crude oil price, but with uncertainties of demand in China and the volatility of crude oil; they simply preferred to take a "wait and see" position rather than buy and hope international markets go up.
There was a similar outlook for HDPE blow molding where 58 cents/lb in railcars was available but traders were more comfortable buying at or under 56 cents/lb.
"Prices cannot keep going up and that's what they've been doing for the past 5 months," a trader said on his lack of confidence that prices would maintain their bullish trend in January.
