Asia LLDPE: Fallen on weak demand# India Reliance revives Nagothane PE plant# Arbitrage is difficult in a container shortageThe week ended May 11, 2008, saw Asian low-density linear
polyethylene prices fall due to a lacklustre demand from China and traders
returning to work after the Eid al-Fitr holiday. The trader said that although
the Southeast Asia-Europe-US and Southeast Asia–US arbitrages were still
possible, it was difficult due to logistical problems. Asia is still the most affordable in terms of prices, but
there are arbitrage windows in Southeast Asia Europe, or Southeast Asia US. According to a trader, shipping costs from Southeast Asia to
America were $800/mt-$850/mt or $20,000/FEU. Southeast Asia to Europe cost
$600-$700/mt or $17000/FEU. An Asia-based
trader stated that arbitrage was difficult because customer trust is hard to
win due to port congestions and...