China’s PP, LLDPE futures slump as local stocks move above 1 million tons
by ChemOrbis Editorial Team - content@chemorbis.com
PP and LLDPE futures on the Dalian Commodity Exchange started the first trading day after the extended Chinese New Year holiday with notable decreases.
This was due to concerns over high inventories amid thin demand. A trader reported that two major local producers’ combined local polyolefin availability is above 1 million tons as of early week, accumulated around 600,000 tons during the holiday.
On February 3, May PP futures were down by CNY440/ton ($63/ton) from January 23, the last working day before the holiday. May LLDPE futures also fell CNY425/ton ($61/ton) from the previous settlement.
Although the Chinese New Year holiday officially ended, trading is yet to return to normal due to the coronavirus outbreak. Several Chinese producers have asked their employees to work from home in an attempt to contain the spread of the coronavirus. This has led to plunging foot traffic that is transforming city centers into “ghost towns".
A few company sources opined, “We think that prices this week will be mostly notional as buyers will have no interest to conclude deals.”
This was due to concerns over high inventories amid thin demand. A trader reported that two major local producers’ combined local polyolefin availability is above 1 million tons as of early week, accumulated around 600,000 tons during the holiday.
On February 3, May PP futures were down by CNY440/ton ($63/ton) from January 23, the last working day before the holiday. May LLDPE futures also fell CNY425/ton ($61/ton) from the previous settlement.
Although the Chinese New Year holiday officially ended, trading is yet to return to normal due to the coronavirus outbreak. Several Chinese producers have asked their employees to work from home in an attempt to contain the spread of the coronavirus. This has led to plunging foot traffic that is transforming city centers into “ghost towns".
A few company sources opined, “We think that prices this week will be mostly notional as buyers will have no interest to conclude deals.”
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