China’s PP, LLDPE futures slump as local stocks move above 1 million tons
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.”
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Supply limitations bolster Feb PP and PE outlook in Turkey
- China’s import PP markets climb to 6-month highs prior to Lunar New Year
- Weak activities press import PE, PP suppliers for discounts in Egypt
- Price erosion continues inside Middle Eastern polyolefins markets
- European PP, PE markets open 2023 with renewed drops
- Tight supply keeps expectations bullish in Turkey’s PVC market
- End of China’s ‘zero-COVID’ stance: Double-edged sword for Asia PVC, PP and PE markets
- Mid-Eastern sellers approach China, SE Asia and Turkey with firmer PP, PE prices for Jan
- Egypt’s local PE, PP markets head north as pound plunges to new low
- Styrenics markets reverse slump after months-long downtrend in Europe