PP, PE sellers divert cargoes to China instead of COVID-hit India, SEA
Fresh lockdowns amid surging cases have resulted in a slump in domestic demand in those regions, pushing sellers to divert their cargoes to alternative outlets, particularly to China.
A source from a Southeast Asian PE and PP producer commented, “Import prices across Asia face pressure from fading demand from India and Southeast Asia. Trading activity has slowed down also due to the Eid holidays in the latter. Sentiment can only improve once these countries control the pandemic.”
CIF China prices continue downtrend amid rising supply
Import PE prices in China reversed the course in around late March and have declined steadily since then. In the import PP market, raffia and injection prices have been coming off since they started to retreat from a 6-year high in mid-April.
The downtrend in the polyolefin markets has been mostly attributed to a lack of demand towards import material amid much more competitive prices and comfortable supplies inside China’s local markets.
With the raging pandemic in India and Southeast Asia pushing more sellers to divert their previously-purchased or new shipment cargoes to the country, players expect the pressure on CIF China prices to build over the near term.
Import prices hit lowest levels since before Lunar New Year holidays
According to the weekly average data from ChemOrbis Price Index, import prices on CIF China basis for homo-PP, LDPE, LLDPE, and HDPE film have hit their lowest levels since the week before the Chinese New Year holidays.
The overall price ranges were assessed at $1140-1190/ton for homo-PP raffia, at $1340-1390/ton for LDPE film, at $1060-1150/ton for LLDPE film, and at $1060-1120/ton for HDPE film, all on CIF China, cash basis.
When compared to last week, homo-PP, LLDPE, and HDPE prices witnessed decreases ranging from $10/ton to $30/ton while LDPE plunged $90-100/ton.
The low ends of all price ranges were formed by offers for Indian origins, meanwhile.
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