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