China’s local PP, PE prices cautiously rebound after 2-month downtrend
by Pınar Polat - ppolat@chemorbis.com
In China, local PP and PE prices have reversed course this week after following a downtrend since early April, mainly with support from oil-driven gains in Dalian futures. There has also been optimism amid
Shanghai’s emerging from a long-term Covid-19 lockdown as of June 1, although demand recovery has been slow so far, most market players reported.
September LLDPE and PP futures settled higher for the sixth consecutive trading session as of June 1st, indicating total gains of CNY738/ton ($111/ton) and CNY683/ton ($102/ton), respectively.
PE prices have been assessed flat to CNY50-100/ton ($7-15/ton) higher at CNY11400-12010/ton ($1496-1579/ton without VAT) for LDPE film, at CNY8800-9540/ton ($1517-1255/ton without VAT) for LLDPE film and CNY9200-9460/ton ($1210-1244/ton without VAT) for HDPE film, all on ex-warehouse China, cash including VAT basis.
A trader said, “Local PP and PE offers have climbed higher on stronger Dalian futures values this week. There is also a positive impact from the first week of Shanghai reopening in terms of higher crude oil futures. Most players expect that downstream production would only ramp up slowly, hence recovery would be gradual.”
As for PP, homo-PP raffia and PPBC inj. prices have been assessed CNY50-200/ton ($7-30/ton) higher on the week to be currently standing at CNY8700-8800/ton ($1144-1157/ton without VAT) and CNY8800-9300/ton ($1157-1223/ton without VAT) on an ex-warehouse China, cash including VAT basis, respectively.
Another trader noted, “Domestic PP and PE offers have increased this week due to strong cost support such as higher crude oil and Dalian futures values. However, there is a lack of follow-up from downstream demand. Procurement continues to be on a need basis only. We hope demand will improve as Shanghai is reopening and we believe that it will take time for demand to recover.”
On the supply front, meanwhile, two major local producers’ combined polyolefin levels have slightly increased by 25,000 tons from May 30 to stand at 760,000 tons as of June 1. This is also considered an indicator that buying activity has remained thin so far.
Shanghai’s emerging from a long-term Covid-19 lockdown as of June 1, although demand recovery has been slow so far, most market players reported.
September LLDPE and PP futures settled higher for the sixth consecutive trading session as of June 1st, indicating total gains of CNY738/ton ($111/ton) and CNY683/ton ($102/ton), respectively.
PE prices have been assessed flat to CNY50-100/ton ($7-15/ton) higher at CNY11400-12010/ton ($1496-1579/ton without VAT) for LDPE film, at CNY8800-9540/ton ($1517-1255/ton without VAT) for LLDPE film and CNY9200-9460/ton ($1210-1244/ton without VAT) for HDPE film, all on ex-warehouse China, cash including VAT basis.
A trader said, “Local PP and PE offers have climbed higher on stronger Dalian futures values this week. There is also a positive impact from the first week of Shanghai reopening in terms of higher crude oil futures. Most players expect that downstream production would only ramp up slowly, hence recovery would be gradual.”
As for PP, homo-PP raffia and PPBC inj. prices have been assessed CNY50-200/ton ($7-30/ton) higher on the week to be currently standing at CNY8700-8800/ton ($1144-1157/ton without VAT) and CNY8800-9300/ton ($1157-1223/ton without VAT) on an ex-warehouse China, cash including VAT basis, respectively.
Another trader noted, “Domestic PP and PE offers have increased this week due to strong cost support such as higher crude oil and Dalian futures values. However, there is a lack of follow-up from downstream demand. Procurement continues to be on a need basis only. We hope demand will improve as Shanghai is reopening and we believe that it will take time for demand to recover.”
On the supply front, meanwhile, two major local producers’ combined polyolefin levels have slightly increased by 25,000 tons from May 30 to stand at 760,000 tons as of June 1. This is also considered an indicator that buying activity has remained thin so far.
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