Chinese PP, PE markets open post-holiday period on a firm note

According to players in China, PP and PE markets in the country have opened the post-holiday period on a firmer note with several sellers attempting price increases based on limited stock levels as well as the steady energy costs.

A trader reported that import PP and PE prices have firmed up by around $20-40/ton after the holidays, with the trader’s offers standing at $840-850/ton CIF, 90 days for Indian and Saudi Arabian homo-PP, at $1130/ton CIF, cash for Middle Eastern, Iranian and South Korean HDPE film and at $1140/ton CIF, cash for Thai LDPE film and Middle Eastern LDPE injection. “We have heard that a few deals for Middle Eastern LDPE film have been concluded at around $1140/ton CFR, although trading activity has not yet picked up as many buyers are still away from their desks,” the trader commented.

A distributor reported offering domestic cargoes at CNY6600/ton ($858/ton without VAT) for PP raffia, CNY9600/ton ($1248/ton without VAT) for LDPE film and at CNY8900-9000/ton ($1157-1170/ton without VAT) for LLDPE film, all on an ex-warehouse, cash inc VAT basis. “PP and LDPE prices are up around CNY200/ton ($30/ton) while LLDPE prices have risen by CNY100/ton ($15/ton) after the holidays. We believe that the size of any price increases will be limited as most converters will return to the market until next week,” the distributor added.