China’s local PP, PE markets start 2017 with decreases

In China, players report that local PP and PE prices started the new year on a softening note in the face of declining futures markets, in addition to weak demand ahead of the approaching Chinese New Year holiday.

On the Dalian Commodity Exchange, May LLDPE futures recorded a week over week decrease of CNY475/ton ($69/ton) on January 5 while May PP futures were CNY624/ton ($91/ton) lower when compared to a week earlier.

According to a trader in China, local prices for both PP and PE witnessed decreases of around CNY300/ton ($44/ton) when compared to last week. “Both Sinopec and CNPC revised their offers downwards by around CNY50-100/ton ($7-15/ton). The producers aren’t feeling much sales pressure, yet their inventory levels have increased recently,” stated the trader.

A Ningbo-based trader also commented, “PP and PE sellers are willing to give discounts nowadays since demand is expected to slow down further in line with the upcoming Chinese New Year holiday. Meanwhile, the import markets are mostly unchanged this week, with buyers refraining from making import purchases.”