PP, LLDPE futures on Dalian extend losses on higher inventory, weaker demand
by ChemOrbis Editorial Team - content@chemorbis.com
China’s PP and LLDPE futures have been on a downtrend for the third consecutive session in the face of rising inventory pressure and weaker demand.
September 2020 PP futures, the most actively traded contract at the Dalian Commodity Exchange, settled CNY216/ton ($21/ton) lower on Monday, May 11 when compared to the previous session. During sessions on May 7-8, they also posted a total loss of CNY190/ton ($27/ton).
September 2020 LLDPE futures, the most actively traded contract at the Dalian Commodity Exchange also settled CNY120/ton ($17/ton) lower on Monday, May 11 when compared to the previous session. During sessions on May 7-8, they also recorded a cumulative drop of another CNY120/ton ($17/ton).
Demand for polyolefin applications, except for the grades that are used in medicals including fibre, has weakened in China amid economic uncertainties on a global-scale and rising fears of a fresh wave of COVID-19 infections after new cases were reported in Wuhan and Shulan cities.
A trader opined, “Spot polypropylene prices have moved lower today as futures market has continued to weaken on subdued demand and mounting local inventory. We think the market will remain under downward pressure from these bearish factors in the days to come.”
According to traders, the two major domestic producers’ overall polyolefin supplies are reported at 940.000 tons as of today, up by 50.000 tons when compared to Friday, May 8.
September 2020 PP futures, the most actively traded contract at the Dalian Commodity Exchange, settled CNY216/ton ($21/ton) lower on Monday, May 11 when compared to the previous session. During sessions on May 7-8, they also posted a total loss of CNY190/ton ($27/ton).
September 2020 LLDPE futures, the most actively traded contract at the Dalian Commodity Exchange also settled CNY120/ton ($17/ton) lower on Monday, May 11 when compared to the previous session. During sessions on May 7-8, they also recorded a cumulative drop of another CNY120/ton ($17/ton).
Demand for polyolefin applications, except for the grades that are used in medicals including fibre, has weakened in China amid economic uncertainties on a global-scale and rising fears of a fresh wave of COVID-19 infections after new cases were reported in Wuhan and Shulan cities.
A trader opined, “Spot polypropylene prices have moved lower today as futures market has continued to weaken on subdued demand and mounting local inventory. We think the market will remain under downward pressure from these bearish factors in the days to come.”
According to traders, the two major domestic producers’ overall polyolefin supplies are reported at 940.000 tons as of today, up by 50.000 tons when compared to Friday, May 8.
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