A Chinese trader informed that local PP offers in China continue to rally, breaking a new threshold level. During the weekend of April 11-12, the prices kept moving higher as the market remained active. Based on SSESSMENTS.COM’s pricing database, the lowest PP Homo Raffia offers reported on Friday, April 10, were at CNY7,200/ton ($1,023/ton) on cash, EXW China basis and including 13% VAT. By Monday morning, April 13, PP Homo Raffia prices had reached CNY9,000/ton ($1,279/ton), soared by CNY1,800/ton ($256/ton).
SSESSMENTS.COM noted that the uptrend in local PP prices in China started to be apparent at the beginning of April after breaking below CNY6,000/ton-level ($853/ton) in March. The lowest level recorded in this particular month was CNY5,750/ton ($817/ton) on cash, EXW China basis and including 13% VAT. Compared to the level from two weeks ago, the current prices recorded at CNY3,250/ton ($462/ton) higher. The increases in local PP prices were supported by the firmer futures market and crude oil prices, reduced availability, as well as due to the speculation of traders.
SSESSMENTS.COM’s data showed that in the last two weeks, September 2020 PP futures prices on Dalian Commodity Exchange have increased by more than CNY1,000/ton ($142/ton). On April 10, the futures prices settled at CNY6,820/ton ($969/ton), CNY1,147/ton ($163/ton) higher than the settlement recorded on March 30. Marker players also told SSESSMENTS.COM that on April 13, the futures prices increased by the daily limit as soon as it opened. Therefore, the player believes that chances for further increases in PP prices this week are high.
Transactions for local PP cargoes between March 30-April 13 on cash, EXW China basis and including 13% VAT (equivalent in USD excludes VAT)
| Date | Product | Transaction Type | Offers (CNY/ton) | Equivalent in USD/ton | Delivery Location |
|---|
| 30-Mar-2020 | PP Homo Raffia | Offer Given | 5,800-6,400 | 729-805 | China |
| 31-Mar-2020 | PP Homo Raffia | Offer Given | 5,750-6,100 | 723-767 | China |
| 31-Mar-2020 | PP Homo Raffia | Price List | 6,500-6,600 | 817-830 | China |
| 31-Mar-2020 | PP Homo Raffia | Price List | 6,500-6,800 | 817-855 | North China |
| 1-Apr-2020 | PP Homo Raffia | Offer Given | 6,100-6,300 | 767-792 | China |
| 1-Apr-2020 | PP Homo Raffia | Price List | 6,500-6,600 | 817-830 | China |
| 1-Apr-2020 | PP Homo Raffia | Price List | 6,500-6,950 | 817-874 | North China |
| 2-Apr-2020 | PP Homo Raffia | Offer Given | 6,100-6,250 | 767-786 | China |
| 2-Apr-2020 | PP Homo Raffia | Price List | 6,300-6,400 | 792-805 | China |
| 2-Apr-2020 | PP Homo Raffia | Price List | 6,300 | 792 | North China |
| 3-Apr-2020 | PP Homo Raffia | Offer Given | 6,400-6,500 | 805-817 | China |
| 7-Apr-2020 | PP Homo Raffia | Offer Given | 6,600-7,000 | 830-880 | China |
| 7-Apr-2020 | PP Homo Raffia (CTO) | Sold | 6,830-6,840 | 859-860 | China |
| 7-Apr-2020 | PP Homo Raffia | Price List | 6,800-6,900 | 855-868 | China |
| 7-Apr-2020 | PP Homo Raffia | Price List | 6,800-7,450 | 855-937 | North China |
| 8-Apr-2020 | PP Homo Raffia | Offer Given | 6,900 | 868 | China |
| 8-Apr-2020 | PP Homo Raffia | Price List | 7,100-7,200 | 893-905 | China |
| 8-Apr-2020 | PP Homo Raffia | Price List | 7,100-7,750 | 893-975 | North China |
| 9-Apr-2020 | PP Homo Raffia | Offer Given | 7,000-7,100 | 880-893 | China |
| 10-Apr-2020 | PP Homo Raffia | Offer Given | 7,200-7,300 | 905 | China |
| 10-Apr-2020 | PP Homo Raffia | Price List | 7,600-8,000 | 956-1,006 | China |
| 10-Apr-2020 | PP Homo Raffia | Price List | 7,800-9,500* | 981-1,195 | North China |
| 12-Apr-2020 | PP Homo Raffia | Offer Given | 7,900-8,000 | 993-1,006 | China |
| 13-Apr-2020 | PP Homo Raffia | Offer Given | 8,800-9,000 | 1,107-1,132 | China |
Description: *The same seller increased offers by CNY1,750/ton ($249/ton) compared to April 8
September 2020 PP Futures Prices On Dalian Commodity Exchange
| Date | Dalian PP Settlement |
|---|
| 30-Mar-2020 | 5,673 |
| 31-Mar-2020 | 5,791 |
| 1-Apr-2020 | 5,803 |
| 2-Apr-2020 | 6,006 |
| 3-Apr-2020 | 6,247 |
| 7-Apr-2020 | 6,569 |
| 8-Apr-2020 | 6,598 |
| 9-Apr-2020 | 6,679 |
| 10-Apr-2020 | 6,820 |
Tags: Asia Pacific,China,English,NEA,News,PP
Published on April 13, 2020 12:59 PM (GMT+8)
Last Updated on April 13, 2020 5:19 PM (GMT+8)
