DailySSESSMENTS: China PP Price 28th July 2020

Author: SSESSMENTS

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- Following the increases in PP prices in the futures market, a Chinese trader stated to SSESSMENTS.COM that most sellers are aggressively trying to move out PP inventory on-hand. However, the trader prefers to maintain the offers for local PP Homo Raffia stable on the day-to-day comparison. The current offers from the trader’s end stand at CNY7,800-7,850/ton ($1,114-1,121/ton) on cash, EXW China basis and including 13% VAT. In the futures market, as of July 28, September 2020 (PP) prices on the Dalian Commodity Exchange posted an increase of CNY181/ton ($26/ton), as observed at 2.20 PM (GMT+8), open at CNY7,536/ton ($1,076/ton) by morning trading session.

- In the import market, a trader informed SSESSMENTS.COM that compared to a fortnight ago, PP Homo Raffia offers from the leading Indian petrochemical producer declined by $5/ton. However, market talks have it that another trader submitted bids for the same cargo at $20/ton lower than the initial offers level, at $890/ton on LC at sight, CIF China main port basis. As the last shipment for the Indian cargoes will be on September 30, the trader believes that purchasing at current level is too risky.

Product	Price (USD)	Terms	Changes From Previous Trading Day (USD)
Brent	43.41	September Settlement	0.07
NYMEX	41.6	September Settlement	0.31
Naphtha	393	CFR Japan	-1
Ethylene	798-804	CFR NEA	No Changes
Ethylene	712-720	CFR SEA	No Changes
Propylene	823-829	CFR China	No Changes
Propylene	783-789	FOB Korea	No Changes