China’s local PP market firms further, PE holds stable
Tight supplies and higher futures prices pulled the domestic PP market up slightly. According to ChemOrbis Price Index, homo PP prices were reported CNY50/ton ($7/ton) higher at CNY8250-8600/ton ex-warehouse, cash inc VAT ($1057-1109/ton excluding VAT). This is the fourth straight week that domestic PP prices have risen in China with a cumulative gain of $45/ton, as can be seen from the graph below.
Although local availability is limited for LLDPE and particularly for LDPE, this factor has not managed to drive the domestic PE market higher this week. A trader thinks that tight supplies were already priced in. The local market was also unresponsive to the higher futures market as Chinese players widely concur that PE demand remains thin. “Unlike before, buyers were not tempted to engage in new purchases. They continue to buy on a needs only basis,” said a trader.
This week, the local market was reported at CNY9450-10650/ton for LDPE, CNY9000-10200/ton for LLDPE and CNY9200-9800/ton for HDPE film, all ex-warehouse, cash inc VAT. They respectively come to $1213-1367/ton, $1155-1309/ton and $1181-1258/ton without VAT.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
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