China’s new capacities put pressure on PP, LLDPE imports and prices
This was expected to happen as a result of new capacities as China is also forecast to reach self-sufficiency in PP in the long term. According to players in China, new coal based capacities are mostly concentrated on PP rather than on PE, which explains the visible fall in imports. This is also reflected on the pricing of the two product groups as the gap between them has widened considerably since the middle of 2015.
As can be seen from the graph below prepared by ChemOrbis Price Wizard that compares import homo PP prices with import HDPE film prices in China, it is clear that the gap was rarely above $100/ton traditionally, although it has been around $150-200/ton since the second half of 2015 with some months seeing a gap above $200/ton.
Cumulative LLDPE imports during the January-July period were down by 7% on a yearly basis, which is comparatively smaller than that of homo PP. Among PE products, new domestic capacities are heavily concentrated in LLDPE, reported players in China. This is also reflected on the pricing of LLDPE and HDPE although the gap between the two products is not as considerable as the gap between PP and HDPE.
As can be seen from the graph below, HDPE has occasionally traded above LLDPE film since the second half of 2015. However, the gap between the two products has been mostly below $50/ton so far based on the average of ChemOrbis Price Index.
Lebih banyak berita plastikHarga resin plastik (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS), tren pasar polimer, dan lainnya
- Harga etilena menyentuh titik terendah baru di Asia, Eropa; AS tetap stabil
- Harga ABS terendah dalam lebih dari satu tahun di Asia, Eropa
- Harga stirena turun ke titik terendah dalam beberapa bulan di Asia dan Eropa
- PET Eropa mencatatkan penurunan dua digit untuk bulan Oktober
- Penurunan PVC semakin cepat di Asia karena penurunan lebih besar dari prediksi oleh produsen utama Taiwan
- Spot propilena Asia kembali unggul atas etilena untuk pertama kali sejak 2013
- Harga LDPE, LLPDE impor hampir setara dengan etilena di China
- Para pelaku pasar Turki menyampaikan prediksi awal PP dan PE bulan November
- Pembelian yang terbatas menahan dampak dari penutupan PVC di Eropa
- Pasar PP China mengawali periode setelah liburan dengan kenaikan