China’s PP, PE markets unresponsive to Brexit woes
Following the UK’s decision to exit from the EU, there are uncertainties ahead and players in Asia widely concur that demand from Europe for export opportunities will be lower in the near and medium term. Some traders in China and Southeast Asia also pointed to the further depreciation of local currencies against the US dollar upon this news. “Our cost of importing material will be higher due to the weaker Chinese Yuan,” said a trader in Shanghai.
The recent losses of the energy complex also pushed buyers in Southeast Asia to sidelines. A shopping bag manufacturer in Vietnam said, “Now that crude oil lost ground, we prefer to adopt a wait and see policy.” A trader in Vietnam also does not think that the recent upturn in PP and PE markets will be sustainable as both converters and distributors are increasingly more cautious upon the decreases of crude oil.
Nevertheless, the Chinese PP and PE markets appear to have shrugged off this news so far this week. A trader in Xiamen said, “The stock market turned bearish but it pared its losses later on. Although players continue to buy on a needs only basis, local and import PP and PE prices have still been on a firm note.”
In China’s import market, a global producer raised its PP offers by $20/ton this week while a Saudi major lifted its PE prices by $40-70/ton for July shipments.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Firming in ethylene lags behind propylene in Europe
- PET rally stalls in China after prices hit four-and-half-year high
- Asian PS retains firming path on supportive upstream
- June PE outlook under discussion in Europe
- Taiwanese major lowers June PVC offers to Asia despite firm China
- Local PP markets cautiously firmer in Vietnam, Indonesia
- Global ethylene prices continue to defy energy rally
- China’s import polyolefin markets up on soaring crude, futures
- Step-back from initial rollover attempts for ABS in Europe
- Mixed expectations in Asian PVC markets ahead of Taiwanese major’s June pricing