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Chinese polymer sellers seek increases after holidays

  • 18/02/2016 (04:30)
Players in China report that sellers have opened the post-holiday period with increase attempts for most polymer products based on steady upstream costs. Sellers report that they are planning to maintain a firm stance on their prices even though deals remain limited as many converters are still away from their desks for the holidays.

“We expect to see some limited upward movement in prices as buyers built up smaller than usual pre-holiday stocks. Activity is still limited in the market as many buyers have not yet returned from the holidays,” a distributor stated. A trader offering imported PP and PE commented, “Import prices for PP and PE are up by around $20-40/ton compared with the pre-holiday period. We believe that deals will be achieved at higher levels after the holidays and we have heard that some deals for Middle Eastern LDPE film are already being concluded with increases.”

A distributor offering domestic PP and PE added, “Local prices for PP and PE have gained ground after the holidays and we believe that prices will record some additional upward movement before stabilizing.”

In the PVC market, several acetylene based producers reported lifting their export prices in line with better sales to the domestic market. “Domestic prices are moving up, so we raised our export offers accordingly. We are seeing limited interest from our overseas customers for now as they claim that there are competitive offers for conventional PVC available in the market,” a source at a domestic producer stated. A trader offering ethylene based PVC for export commented, “Acetylene based PVC producers have raised their prices by as much as $40/ton, so we are only offering ethylene based materials for now as we feel that acetylene based cargoes will struggle to compete.”

An agent representing a domestic PS and ABS producer reported lifting their prices following the holidays. “Our supplier raised their offers in response to firmer spot styrene costs. Buying interest is still limited for now, but we believe that more players will be back to the market next week and that a clearer outlook will emerge,” the trader stated. A South Korean producer reported lifting their ABS prices to China while adding that they have not decided on their new PS prices yet.

PET prices also opened the post-holiday period on a firm note, with a trader commenting that they raised their export prices by $10/ton. “We are still waiting for more players to return to the market, but most sellers are seeking some increases on their initial post-holiday prices,” the trader stated.
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