China’s local PP, PE markets continue uptrend on futures
September LLDPE futures on the Dalian Commodity Exchange were CNY125/ton ($18/ton) higher from a week earlier on July 9 while September PP futures posted a larger increase of CNY236/ton ($34/ton).
In addition to this, two major local producers’ reportedly lower polyolefin supplies have also continued to support the market.
A Chinese trader reported that local PE prices increased further by CNY100/ton ($15/ton) for LDPE film and LLDPE film and CNY200/ton ($29/ton) for HDPE film. As for PP, the recent local offers indicated weekly increases of CNY150/ton ($22/ton) for PPBC inj. and CNY200-250/ton ($29-36/ton) for homo-PP raffia.
“Suppliers have continued to increase their PP and PE offers to local market this week in line with firm futures. Plus, two major local polyolefin supplies have also diminished. However, we think that local PP and PE prices may see a slight downward correction following the recent gains given a lack of support from the demand side,” he commented.
According to the trader, local prices are currently standing at CNY8800-8900/ton ($1133-1146/ton without VAT) for homo-PP raffia, at CNY9050-9150/ton ($1166-1178/ton without VAT) for PPBC inj., at CNY8450-8550/ton ($1088-1101/ton without VAT) for LDPE film, at CNY8000/ton ($1030/ton without VAT) for LLDPE film and at 8700-8800/ton ($1121-1133/ton without VAT) for HDPE film, all on ex-warehouse China, cash including VAT basis.
Meanwhile, oversupply concerns amid the upcoming new PP capacities inside China in H2 2019 , limited demand and the trade tensions with the US push Chinese PP and PE players to remain cautious over the near term despite the ongoing price gains.
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