- After a record rally, China PP market has started to cool down. One of the Chinese traders voiced out to SSESSMENTS.COM that the uptrend in the market will be short-lived without strong demand to shore up the prices. In a day interval, the trader initiated a price reduction of between CNY50-100/ton ($7-14/ton) for local PP Homo Raffia cargoes. The latest offers from the trader are available between CNY7,500-8,000/ton ($1,059-1,130/ton) on cash, EXW China basis and including 13% VAT. At the moment, most buyers refrain from replenishing inventories in an anticipation for lower prices in the near term. From the import market, market talks have it that some traders are re-exporting Indian PP Homo Raffia for June shipment above $900/ton-threshold level, or at $950/ton on LC at sight, FOB China basis. Considering the current market situation, the trader remains pessimistic about whether buyers will accept the offers.
- On the supply side, market sources in China shared with SSESSMENTS.COM on the latest updates of inventory level at the two leading Chinese polyolefins producers. As of Friday, April 17, the inventory level of the two leading Chinese polyolefins producers accumulated to 900,000 tons, an increase of 10,000 tons as compared to Thursday’s level. When compared to Monday’s level, it showed a reduction of 60,000 tons.
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| Product | Price (USD) | Terms | Changes From Previous Trading Day (USD) |
|---|
| Brent | 27.82 | June Settlement | 0.13 |
| NYMEX | 19.87 | May Settlement | No Changes |
| Naphtha | 193 | CFR Japan | 4 |
| Ethylene | 397-405 | CFR NEA | -29 to -31 |
| Ethylene | 347-355 | CFR SEA | -34 to -36 |
| Propylene | 677-685 | CFR China | -9 to -11 |
| Propylene | 627-635 | FOB Korea | -65 |
Futures Price on Dalian Commodity Exchange (DCE)
| Dalian Futures September 2020 | Today’s Open (CNY/ton) | Previous Trading Day’s Settlement (CNY/ton) | Today’s Settlement (CNY/ton) |
|---|
| PP Raffia | 6,791 | 6,715 | 6,882 |
PP Homo Raffia, on cash, EXW China basis, including 13% VAT
| Origin | Previous Trading Day’s Range (CNY/ton) | Today’s Range (CNY/ton) |
|---|
| China | 7,600-8,000 | 7,500-8,000 |
Import PP Homo Raffia on LC at sight, CIF China main port basis
| Origin | Previous Trading Day’s Range (USD/ton) | Today’s Range (USD/ton) |
|---|
| Middle East | 810-830 | 810-830 |
Tags: Asia Pacific,China,Daily,English,NEA,PP
Published on April 17, 2020 3:56 PM (GMT+8)
Last Updated on April 20, 2020 4:34 PM (GMT+8)
