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PP’s price gains outpace PE in Asia and Mid-East

by ChemOrbis Editorial Team -
  • 15/03/2016 (02:48)
Since the start of the upturn in mid-January in Asia and the beginning of February in the Middle East, both PP and PE prices have been rising constantly. However, the gains of PP prices have almost doubled that of PE in both regions, according to ChemOrbis Price Index.

In the world’s largest spot market, China, PP prices rose by 12% since mid-January while the cumulative gain in the PE market was at 5% for HDPE and LLDPE film on average. The LDPE market’s increase was even smaller at 3% in the same timeframe.

In Southeast Asia, PP prices soared by 14% in the past one and a half month. In the PE market, import prices gained 5% on average while LLDPE and HDPE’s cumulative increase was around 7-8%, based on ChemOrbis Price Index.

When looking at Middle Eastern markets, Turkey’s PP market posted a significant increase of 23% on average for homo PP raffia and fibre. This is also double the increase seen in the Chinese PP market. Turkey’s import PE market, meanwhile, has risen by 10% for LDPE and LLDPE and 7% for HDPE film on average, based on ChemOrbis Price Index.

In the United Arab Emirates, meanwhile, the PP market has gained 5% while the PE market has moved up 2-3% for March in the past two weeks.

The reason behind the large increases of PP prices in these major markets is that PP fell by a larger amount during the downturn. China’s PP market plunged 39% between the peak in mid-May 2015 and the bottom in mid-January this year while PE lost 25% in the same period. New coal based PP capacities coming on-stream in China played a particular role in this.

In the case of Turkey, homo PP raffia prices had eroded 41% during the downturn that mostly falls under the same dates. On the other hand, this change amount was 29% in PE. This also explains the considerably larger jump of 23% in Turkey’s PP market compared to many other markets.
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