Local homo-PP, LLDPE prices more competitive than imports in China
As can be seen in the below graph created by ChemOrbis Price Wizard, local homo-PP prices on a weekly average basis moved below imports in late February and the gap is currently standing at $80/ton, the largest of the past one year.
A distributor commented, “Players prefer to source local cargoes rather than imports as they are offering a more competitive edge,”
A trader opined, “Local PP prices have been more competitive than import prices for a while. Demand is slow and there is a high sales pressure on sellers as buyers prefer to remain on the sidelines. Prices are expected to be stable to softer in the near term.”
Data also shows that local LLDPE film prices have been hovering below imports for the past three weeks. The gap is currently standing at $55/ton after reaching $62/ton last week, the largest of the last two years.
A trader noted, “Local PE prices in China are decreasing due to lower futures prices. Import sales are conducted at a loss due to the large price gap between locals and imports. Although traders are willing to give discounts on imports in order to conclude deals, buyers still prefer to source from the local market rather than imports.”
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