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MonthlySSESSMENTS: April China PP Prices

Author: SSESSMENTS

  • Four digits adjustments were applied on local offers on a daily comparison
  • The actual demand for PP in April was weak
  • PP Homo Raffia supply was lesser because some producers switched to produce other PP grades

China PP prices were on a roller coaster ride in April. At the beginning of the month, local and import PP prices were on downtrend and market players contacted by SSESSMENTS.COM were pessimistic that a rebound can be seen in both local and import PP prices. However, surprisingly, in the week commencing April 6, local offers started to increase. On a weekly comparison, local PP Homo Raffia offers in this particular week were adjusted up between CNY200-700/ton ($28-99/ton) while local PP Random Copolymer offers surged by CNY300/ton ($42/ton). Over the weekend (April 11-12), local prices kept moving higher as the market was active. By Monday, April 13, local PP Homo Raffia offers jumped between CNY1,300-1,800/ton ($184-254/ton) while PP Homo Injection by CNY1,300/ton ($184/ton) compared to levels recorded on April 10. A local trader made further adjustments on April 14, hence, the cumulative increases of offers from the trader for PP Homo Raffia and PP Homo Injection were CNY1,800-2,000/ton ($254-283/ton) and CNY2,300/ton ($325/ton), respectively. SSESSMENTS.COM was told that the remarkable increases in local PP prices were due to firmer futures prices on April 13, stronger crude oil prices, reduced supply as some producers switch production to PP Homo Fiber, and speculation of traders. Bullish buying sentiment was able to provide support for the uptrend in prices even though futures prices softened on April 14. 

On April 15, SSESSMENTS.COM noted that spot PP Homo Raffia dropped between CNY1,000-1,500/ton ($141-212/ton) from levels a day earlier due to softer futures prices coupled with unsupportive demand from downstream customers. The downtrend continued to the week commencing April 20. On the first day of the week, local PP Homo Raffia offers were reported at CNY50-500/ton ($7-85/ton) lower than a week earlier. Then, after crude oil prices dropped to negative territory a day later, another reduction of CNY1,000/ton ($141/ton) was applied. The product was then available at below CNY7,000/ton ($989/ton) on cash, EXW China basis and including 13% VAT. In the last week of the month, local PP Homo Raffia and PP Homo Injection prices were adjusted up between CNY50-100/ton ($7-14/ton) compared to the previous week. 

Similar to local offers, import PP offers were also on an uptrend in the week commencing April 6 and April 13. In the week commencing April 6, offers for PP Homo Raffia of Vietnam origin increased twice, and the total increase was $45/ton from a week earlier. Offers for the same product from India went up between $50-60/ton compared to the same period. In the week commencing April 13, the upward adjustments were mostly by three digits. SSESSMENTS.COM was informed that offers for PP Homo Raffia from a Saudi producer were adjusted up by $100/ton while offers for PP Homo Raffia of Vietnam origin increased between $150-160/ton on a weekly comparison. A week later, May shipment offers for PP Homo Raffia from South Korea surfaced at $70/ton lower than April. Offers for PP Homo Raffia of Middle East origin were stable on a weekly comparison. In the last week of the month, import PP prices to China were still on a downtrend. PP Homo Raffia and PP Homo Injection from Vietnam dropped by $120/ton compared to two weeks earlier.

In the first half of the month, buying sentiment improved because prices were on an uptrend. However, strong demand was only shown by mask manufacturers and traders that hedged. SSESSMENTS.COM was told that among all converters in China, only around 20% are mask manufactures. In the second half of the month, buying sentiment was bearish due to the drop in crude oil prices and the International Labor Day holiday ahead. Hence, the actual demand for most PP grades in April was categorized as weak. On the supply side, the availability of PP Homo Raffia was reported lesser because some producers switched to produce other PP grades, mostly to PP Homo Fiber.

Entering May, market players opined to SSESSMENTS.COM that demand will remain weak at least in the first half of May because most converters prefer to wait on the side line until the results of the government meeting in mid May are announced. After that, if the authorities agree to boost local industries, demand will start to improve. In terms of supply, PP Homo Raffia supply is expected to be no longer limited and the inventory of two major polyolefins producers is predicted to accumulate to 1 million tons level after the International Labor Day Holiday.

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WeeklySSESSMENTS: China PP Prices W/C April 6

WeeklySSESSMENTS: China PP Prices W/C April 13

WeeklySSESSMENTS: China PP Prices W/C April 20

WeeklySSESSMENTS: China PP Prices W/C April 27

Range of local PP offers between April 1 to April 3 on cash, EXW China basis (including 13% VAT in CNY term, excluding VAT in USD term)

OriginProductTransaction TypeOffers (CNY/ton)Equivalent in USD/ton)
ChinaPP Block CopolymerOffer Given6,100-6,200763-775
ChinaPP Homo InjectionPrice List6,700-7,200838-901
ChinaPP Homo RaffiaOffer Given6,100-6,500763-813
ChinaPP Homo RaffiaPrice List6,500-7,050813-882
ChinaPP Random Copolymer InjectionPrice List7,650-8,200957-1,026

Range of import PP offers between April 1 to April 3 on LC at sight, CIF China Main Port basis

OriginProductTransaction TypeOffers (USD/ton)
Far East AsiaPP Block CopolymerSold780
Southeast AsiaPP Block CopolymerPurchased760-780
Far East AsiaPP Homo InjectionOffer Given800
Far East AsiaPP Homo InjectionSold860
Southeast AsiaPP Homo InjectionSold800
Indian SubcontinentPP Homo RaffiaPurchased685
Far East AsiaPP Homo RaffiaOffer Given800
Far East AsiaPP Homo RaffiaOffer Received680-690
Far East AsiaPP Homo RaffiaPurchased680
Far East AsiaPP Homo RaffiaSold750
Middle EastPP Homo RaffiaOffer Given710-720
Southeast AsiaPP Homo RaffiaSold740

Range of local PP offers between April 6 to April 10 on cash, EXW China basis (including 13% VAT in CNY term and excluding VAT in USD term)

OriginProductTransaction TypeOffers (CNY/ton)Equivalent in USD/ton
ChinaPP Block CopolymerOffer Given7,600-7,800951-976
ChinaPP Homo InjectionOffer Given6,900-7,300863-913
ChinaPP Homo InjectionPrice List7,400-8,050926-1,007
ChinaPP Homo RaffiaOffer Given6,900-7,300863-913
ChinaPP Homo RaffiaPrice List7,600-8,000951-1,001
ChinaPP Homo Raffia (CTO)Sold6,830-6,840854-856
ChinaPP Random Copolymer InjectionPrice List8,150-8,7001,019-1,088

Range of import PP offers between April 6 to April 10 on LC at sight, CFR/CIF China Main Port basis

OriginProductTransaction TypeOffers (USD/ton)Payment TermDelivery Term
Far East AsiaPP Block CopolymerOffer Received800LC at sightCIF
Far East AsiaPP Block CopolymerBid Given810LC at sightCIF
Far East AsiaPP Block CopolymerSold800LC at sightCIF
Far East AsiaPP Block CopolymerSold800LC 30 DaysCIF
Southeast AsiaPP Block CopolymerOffer Received850LC at sightCIF
Southeast AsiaPP Block CopolymerSold850LC at sightCIF
Far East AsiaPP Homo FilmSold730LC at sightCFR
Far East AsiaPP Homo InjectionBid Given730LC at sightCIF
Far East AsiaPP Homo InjectionSold730LC at sightCFR
Middle EastPP Homo InjectionOffer Given770LC at sightCIF
Southeast AsiaPP Homo InjectionOffer Received820LC at sightCFR
Far East AsiaPP Homo RaffiaOffer Received760LC at sightCIF
Far East AsiaPP Homo RaffiaBid Given730LC at sightCIF
Far East AsiaPP Homo RaffiaSold760LC at sightCIF
Indian SubcontinentPP Homo RaffiaSold725LC 30 daysCIF
Middle EastPP Homo RaffiaOffer Given710-760LC at sightCIF
Middle EastPP Homo RaffiaSold740LC 60 daysCIF
Southeast AsiaPP Homo RaffiaOffer Received800-860LC at sightCIF
Southeast AsiaPP Homo RaffiaOffer Received810-825LC at sightCFR
Southeast AsiaPP Homo RaffiaBuy Idea800LC at sightCFR
Southeast AsiaPP Homo RaffiaSold800LC at sightCFR
Far East AsiaPP Random Copolymer BlowOffer Received900LC at sightCIF
Far East AsiaPP Random Copolymer BlowSold900LC at sightCIF

Range of local PP offers between April 13 to April 17 on cash, EXW China basis (including 13% VAT in CNY term and excluding VAT in USD term)

OriginProductTransaction TypeOffers (CNY/ton)Equivalent in USD/ton
ChinaPP Block CopolymerOffer Given9,0001,126
ChinaPP Block CopolymerOffer Received9,3601,171
ChinaPP Homo InjectionOffer Given8,100-8,5001,013-1,063
ChinaPP Homo InjectionPrice List9,700-10,3501,213-1,295
ChinaPP Homo RaffiaOffer Given9,000-9,5001,126-1,188
ChinaPP Homo RaffiaPrice List9,300-9,8001,163-1,226
ChinaPP Homo Raffia (CTO)Offer Given8,700-8,8001,088-1,101
ChinaPP Homo Raffia (CTO)Sold8,700-8,7501,088-1,094
ChinaPP Random Copolymer InjectionPrice List9,200-9,5001,151-1,188

Range of import PP offers between April 13 to April 17 on CIF China Main Port basis

OriginProductTransaction TypeOffers (USD/ton)Payment Term
Southeast AsiaPP Block CopolymerOffer Received1,050LC at sight
Indian SubcontinentPP Homo InjectionOffer Received880LC at sight
Southeast AsiaPP Homo InjectionOffer Received880LC at sight
Southeast AsiaPP Homo InjectionSold880LC at sight
Indian SubcontinentPP Homo RaffiaSold830LC 90 days
Indian SubcontinentPP Homo RaffiaSold830LC at sight
Middle EastPP Homo RaffiaOffer Received830-900LC at sight
Middle EastPP Homo RaffiaPurchased810LC at sight
Southeast AsiaPP Homo RaffiaOffer Received980LC at sight
Southeast AsiaPP Homo RaffiaPurchased870LC at sight

Range of local/localized PP offers between April 20 to April 24 on cash, EXW China basis (including 13% VAT in CNY term and excluding VAT in USD term)

OriginProductTransaction TypeOffers (USD/ton)Equivalent in USD/ton
ChinaPP Block CopolymerOffer Received8,6001,076
ChinaPP Homo FilmPrice List7,366921
ChinaPP Homo InjectionPrice List7,900-8,450988-1,057
ChinaPP Homo RaffiaOffer Given6,950-7,200869-901
ChinaPP Homo RaffiaPrice List7,200-7,600901-951
VietnamPP Homo RaffiaPurchased6,800-6,900851-863
ChinaPP Homo Raffia (CTO)Sold7,100888
ChinaPP Random Copolymer InjectionPrice List8,300-8,7001,038-1,088

Range of import PP offers between April 20 to April 24, CIF China Main Port basis

OriginProductTransaction TypeOffers (USD/ton)Payment Term
Far East AsiaPP Block CopolymerOffer Given890LC at sight
Middle EastPP Block CopolymerOffer Received800-830LC at sight
Southeast AsiaPP Homo FilmOffer Given875LC at sight
Southeast AsiaPP Homo FilmSold835LC at sight
Far East AsiaPP Homo InjectionOffer Given860LC at sight
Indian SubcontinentPP Homo InjectionOffer Received770LC at sight
North AmericaPP Homo InjectionOffer Received810LC 90 Days
Far East AsiaPP Homo RaffiaOffer Given850LC at sight
Indian SubcontinentPP Homo RaffiaOffer Received770LC at sight
Middle EastPP Homo RaffiaOffer Given750-800LC at sight
Middle EastPP Homo RaffiaOffer Received770-810LC at sight
North AmericaPP Homo RaffiaOffer Received810LC 90 Days
Southeast AsiaPP Homo RaffiaOffer Received885LC at sight
Southeast AsiaPP Random Copolymer InjectionSold960LC at sight

Range of local PP offers between April 27 to April 30 on cash, EXW China basis (including 13% VAT in CNY term and excluding VAT in USD term)

OriginProductTransaction TypeOffers (CNY/ton)Equivalent in USD/ton
ChinaPP Block CopolymerOffer Given7,800-8,200976-1,026
ChinaPP Homo InjectionOffer Given7,400-7,800926-976
ChinaPP Homo InjectionPrice List7,500-7,800938-976
ChinaPP Homo RaffiaOffer Given7,300-7,700913-963
ChinaPP Homo RaffiaPrice List7,200-7,400901-926
ChinaPP Impact CopolymerPrice List7,400-7,700926-963
ChinaPP Random Copolymer InjectionPrice List8,100-8,3001,013-1,038

Range of import PP offers between April 27 to April 30 on LC at sight, CIF China Main Port basis

OriginProductTransaction TypeOffers (USD/ton)Payment Term
Far East AsiaPP Block CopolymerOffer Given850*LC at sight
Far East AsiaPP Block CopolymerSold840*-850*LC at sight
Far East AsiaPP Homo InjectionPurchased810LC at sight
Far East AsiaPP Homo InjectionSold810*LC at sight
Middle EastPP Homo InjectionOffer Received760-780LC at sight
Southeast AsiaPP Homo InjectionOffer Received860LC at sight
Far East AsiaPP Homo RaffiaSold810*LC at sight
North AmericaPP Homo RaffiaBid Given800LC 90 days
Middle EastPP Homo RaffiaOffer Given770-800LC at sight
Southeast AsiaPP Homo RaffiaOffer Given830-840LC at sight
Southeast AsiaPP Homo RaffiaOffer Received860LC at sight
Southeast AsiaPP Homo RaffiaSold790LC at sight
Far East AsiaPP Random Copolymer BlowSold940*LC at sight
Description: *Offers for May shipment

Tags: Asia Pacific,China,English,Monthly,NEA,PP

Published on May 11, 2020 1:55 PM (GMT+8)
Last Updated on May 30, 2020 10:10 PM (GMT+8)