China’s PP and PE markets shrug off Dalian surge, close July on a bearish note
As of July 27, Wednesday, September PP and LLDPE futures on the Dalian Commodity Exchange have settled higher for the third consecutive session, posting total gains of CNY84/ton ($13/ton) and CNY109/ton ($16/ton), respectively. Firmer futures prices are mainly attributed to the higher crude oil prices.
PPH raffia and injection offers at/above $1000 CIF mark fade
After homo PP raffia and injection offers below the $1000/ton CIF threshold appeared in the market over the past week, additional weekly losses of $20-40/ton have been reported so far this week, with the overall range standing at $950-980/ton CIF, cash.
A trader commented, “The slowdown in China’s construction and property sectors, Covid-19 concerns, and global inflation are all taking a toll on demand. Currently, PP demand from both domestic and export markets is weak. We expect to see a recovery in August ahead of the coming peak season.”
Local homo PP raffia and injection prices have also been down by CNY100/ton ($15/ton) from last week to stand at CNY8,000-8,100/ton ex-warehouse China, cash including VAT ($1047-1060/ton without VAT).
PE offers test new lows
Import LDPE film falls to the lowest level since June 2021
Import LDPE film offers below the $1200/ton threshold have also appeared this week and ChemOrbis data show that June 2021 was the last time offers at these levels were reported. Offers of this grade have relatively witnessed larger decreases than LLDPE and HDPE film during some parts of the decreasing period.
LDPE film prices of Indian origin currently stand at $1190-1200/ton on CIF, cash basis while the ones of the Middle East and Iran origin stand at $1210-1240/ton with similar terms. These ranges have indicated $20-30/ton decreases from last week so far.
Import HDPE, LLDPE film hover at/around $1000/ton CIF
Import LLDPE film offers below the $1000/ton threshold were reported this week. Indian origin offers are currently standing at $970-980/ton on CIF, cash basis while the ones of Middle East origin are standing at $990-1010/ton with similar terms. These ranges have indicated $50-60/ton decreases from last week so far.
As for HDPE film offers, import prices for the Middle East origin have fallen by $30-40/ton from last week to touch the $1000/ton CIF threshold on the low end.
Local PE prices also significantly down
“Cost support is strong due to firmer crude and Dalian futures prices. However, demand from both export and domestic markets is weak. Although supply pressure for imports mounts, the supply levels at home are moderate now. However, new Covid-19 outbreaks, global economic woes, and extreme temperatures are all affecting demand,” another trader noted.
According to market sources, the two major local producers’ combined polyolefin levels were standing at 635,000 tons as of July 27.
Local PE prices have been assessed at CNY9,900-10,250/ton ($1295-1341/ton without VAT) for LDPE film, at CNY7,900-8,300/ton ($1034-1086/ton without VAT) for LLDPE film, and CNY8,280-8,700/ton ($1083-1138/ton without VAT) for HDPE film, all on ex-warehouse China, cash including VAT basis. The weekly ranges have posted weekly losses within the range of CNY100-550/ton ($15-81/ton) so far this week.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- PE markets remain bearish, but are competitive offers from US fading?
- Premium of Turkey and SE Asia over China nears pre-pandemic norms in PP markets
- Will Asian PVC markets move up to match Taiwanese Sept PVC pricing?
- Mid-Eastern PP, PE markets fall for fourth month running in August
- Asian styrene prices tumble, following in footsteps of crude
- What does China’s self-sufficiency mean for global PP markets?
- Asian PVC back to pre-pandemic price league; players question the bottom
- Stats: Turkey’s H1 2022 polymer imports surpass 3 million tons
- Global oil and petchem companies announce Q2 results
- STATS: China’s H1 polymer imports lowest since 2017, exports at a record-high