China’s local PP, PE prices see further drops
According to data from ChemOrbis, local PP and PE prices in China posted reductions ranging between CNY100-900/ton ($16-145/ton) on a daily basis.
A trader reported that Sinopec reduced their PP prices by CNY600-700/ton ($97-113/ton) today. He commented, “Weaker PP futures prices are putting further downward pressure on the local market while demand remains disappointing. Buyers will probably postpone their purchases again following the local producer’s recent sizeable cut with the expectation of seeing lower prices. We think that the market is still not close to the bottom.”
A Shanghai-based distributor said, “Local LDPE film prices posted additional decreases of around CNY600-700/ton ($97-113/ton) today. Domestic LDPE and LLDPE film prices have already broken below the CNY10000/ton threshold. We are giving discounts of CNY100-200/ton ($16-32/ton) in order to conclude deals. Prices are likely to see further declines over the short term.”
Another trader also reported that local PP and PE prices declined today. “PP futures prices fell below the CNY8000/ton threshold today on the Dalian Commodity Exchange. We feel that the market will see additional decreases before hitting the bottom.”
An agent of another local producer, CNPC, reported that their supplier cut their PP prices by CNY600-700/ton. He commented, “The sharp decreases in crude oil costs are pulling down futures prices. China’s local PP and PE markets are likely to witness further drops in the near term.”
In China, prices for locally-held PP cargoes currently stand at CNY9500-9800/ton ($1324-1366/ton without VAT) for PP block copolymer, at CNY9300-9900/ton ($1296-1380/ton without VAT) for homo-PP raffia and at CNY9500-10300/ton ($1324-1436/ton without VAT) for injection, all on an ex-warehouse China, cash equivalent basis inc VAT.
Meanwhile, domestic PE prices are reported at CNY9800-10900/ton ($1365-1519/ton without VAT) for LDPE film, at CNY9500-9800/ton ($1324-1366 without VAT) for LLDPE film, at CNY10700-11400/ton ($1491-1589/ton without VAT) for HDPE film, at CNY9000-10100/ton ($1254-1408/ton without VAT) for HDPE injection and at CNY10600-10650/ton ($1477-1484/ton without VAT) for blow moulding with the same terms.
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