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MonthlySSESSMENTS: May China PE Prices

Author: SSESSMENTS

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  • Local, localized offers fluctuated following movements in futures market
  • Demand for PE resins was subdued due to weak sentiment in downstream market
  • Positive pricing outlook amid firmer crude oil and feedstock prices is clouded by demand

According to SSESSMENTS.COM pricing database, China PE market began trading activities on a positive note after the Labor Day Holiday, beyond players’ expectations which stated prices might move lower due to accumulation of domestic inventory after the holiday. As noted, prices for local and localized cargoes in the first week of May increased between CNY100-500/ton ($14-70/ton) for HDPE grades, CNY100-450/ton ($14-63/ton) for LDPE Film, and CNY250/ton ($35/ton) for LLDPE Film C4. Likewise, import offers for HDPE Film and LLDPE Film C4 cargoes from Thailand and the US went up between $10-20/ton and $20-30/ton respectively. However, the uptrend in local prices could not sustain as sentiment weakened following decreases in futures prices in the second week. In this particular week, week commencing May 11, local and localized Iranian HDPE Film offers decreased between CNY100-150/ton ($14-21/ton) while local LDPE Film and LLDPE Film C4 offers dropped by CNY100/ton ($14/ton). Meanwhile, foreign suppliers maintained their firm offers. Import offers for Thailand HDPE Film remained stable while HDPE Yarn were adjusted up by $10/ton. Similarly, HDPE Film prices from US suppliers moved up by $10/ton citing satisfactory sales. All changes were on week-on-week comparison. For Middle Eastern cargoes, Saudi HDPE Film offers were reportedly stable from offers available two weeks earlier.

Moving to the third week, China's domestic PE market found its momentum again as supported by firmer crude oil and futures prices, as SSESSMENTS.COM noted. Local offers for HDPE Film, LDPE Film, and LLDPE Film C4 moved up between CNY50-100/ton ($7-14/ton), while localized HDPE Film cargoes of Middle Eastern origin remained stable. Meanwhile, import offers showed a mixed trend. Offers for import HDPE Film, LLDPE Film C4, and mLLDPE C6 of Thailand origin increased by $10/ton for July shipment cargoes. For Saudi origin cargoes, prices for HDPE Film and LDPE Film maintained stable, while LLDPE Film C4 edged down by $10/ton. In the final week of May, local offers moved in different directions while import prices captured stable to firmer. In this particular week, local offers for HDPE Film and HDPE Yarn remained stable while a reduction of CNY200/ton ($28/ton) was applied on HDPE Pipe offers. In contrast, local offers for LDPE Film and LLDPE Film C4 were hiked between CNY50-100/ton ($7-14/ton). In the import market, offers for Middle Eastern HDPE Film cargoes were stable to up by $30/ton, LDPE Film cargoes up by $10/ton, and LLDPE Film C4 surged by $10-30/ton. All changes were on a weekly comparison. Meanwhile, import HDPE Film offers from South Korea surged by $60/ton on biweekly comparison, while deals for HDPE Yarn cargoes of the same origin captured $20/ton higher than deals in early May.

In general, demand for PE resins in China during May was considered as subdued since the downstream market has yet to fully recover from the Coronavirus impact. Converters did not show enthusiasm in stocking materials despite the stronger crude oil and futures prices as sales for their end-products to the export market remained sluggish amid pandemic. Likewise, demand for finished products in the domestic market was not strong enough as end-consumers were cautious on their spendings. However, amongst all PE grades, strong demand was seen for HDPE Pipe as supported by infrastructure projects, market sources told SSESSMENTS.COM. On the supply front, digestion rate of inventory of the two leading Chinese polyolefins producers was digested quite fast during May, particularly for the second half of the month. Polyolefins inventory at both producers recorded a reduction of 165,000 tons and 100,000 tons for the third and fourth week of May, respectively. Yet, market sources mentioned that the fast digestion rate was not associated with robust demand but due to maintenance shutdown at the producers’ plants.

On the production sector, market sources informed SSESSMENTS.COM that Zhongtian Hechuang Energy Co Ltd, a joint venture between Sinopec and China Coal Energy Group, experienced an unplanned shutdown at its LDPE plant on May 25 due to technical issues. The plant located in Inner Mongolia, China, with a total capacity of 670,000 tons/year will remain off-line for 28 days. 

Looking into June, market players foresee local and import PE prices to be on an upward trajectory on the back of strong energy market and firmer feedstock prices. Crude oil price has been moving higher relentlessly and predicted not to touch a negative territory again amid hopes for extended production cuts. Likewise, ethylene prices were captured moving higher gradually during May. Throughout May, ethylene prices on CFR Northeast Asia basis have been moving up as much as $345/ton, recorded at $718-724/ton on May 29. However, the weak demand from the downstream market might impede the potential rise in prices, SSESSMENTS.COM was told.

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Transactions for local/localized PE between May 1 to May 8 on cash, EXW China basis (including 13% VAT in CNY terms, excluding VAT in USD terms)

OriginProductTransaction TypeOffers (CNY/ton)Equivalent in USD/ton
ChinaHDPE Blow MouldingPrice List7,100-7,300883-908
ChinaHDPE FilmOffer Given7,100-7,200883-896
ChinaHDPE FilmPrice List7,500933
IranHDPE FilmOffer Given7,250-7,300902-908
IranHDPE FilmSold7,200896
SaudiHDPE FilmSold6,800846
ChinaHDPE Pipe (PE 100)Price List8,200-8,5001,020-1,057
ChinaHDPE YarnPrice List6,900-7,000858-871
ChinaLDPE FilmOffer Given7,200-7,300896-908
ChinaLDPE FilmPrice List7,200-7,850896-976
QatarLDPE FilmSold7,350-7,450914-927
ChinaLLDPE Film C4Offer Given6,400-6,550796-815
ChinaLLDPE Film C4Price List6,550-6,900815-858

Transactions for import PE between May 1 to May 8 on CIF China Main Port basis

OriginProductTransaction TypeOffers (USD/ton)Payment Term
Middle EastHDPE Blow MouldingOffer Given740-750LC at sight
Middle EastHDPE Blow MouldingOffer Received775LC at sight
Middle EastHDPE Blow MouldingPurchased700LC at sight
North AmericaHDPE Blow MouldingSold700-715LC at sight
North AmericaHDPE Blow MouldingSold700-710LC 90 days
Far East AsiaHDPE FilmOffer Given760LC at sight
Far East AsiaHDPE FilmSold760LC at sight
Middle EastHDPE FilmOffer Given760-770LC at sight
Middle EastHDPE FilmOffer Received750-775LC at sight
Middle EastHDPE FilmSold770LC at sight
North AmericaHDPE FilmOffer Received745-750LC 90 days
North AmericaHDPE FilmPurchased710-730LC 90 days
North AmericaHDPE FilmSold730LC at sight
North AmericaHDPE FilmSold700-720LC 90 days
Southeast AsiaHDPE FilmOffer Given810LC at sight
Middle EastHDPE Pipe Black (100)Bid Given850LC at sight
Middle EastHDPE Pipe Black (100)Offer Received980LC at sight
Middle EastHDPE Pipe Black (100)Sold980LC at sight
Far East AsiaHDPE YarnOffer Received770-790LC at sight
Southeast AsiaHDPE YarnOffer Given780LC at sight
Indian SubcontinentLDPE FilmOffer Given810LC at sight
Indian SubcontinentLLDPE Film C4Offer Given720LC at sight
North AmericaLLDPE Film C4Offer Received720LC 90 days
North AmericaLLDPE Film C4Sold690LC at sight
Southeast AsiaLLDPE Film C4Offer Given790-800LC at sight
Southeast AsiaLLDPE Film C4Offer Received790LC at sight

Transactions for local/localized PE between May 11 to May 15 on cash, EXW China basis (including 13% VAT in CNY terms, excluding VAT in USD terms)

OriginProductTransaction TypeOffers (CNY/ton)Equivalent in USD/ton
ChinaHDPE Blow MouldingPrice List7,100-7,300883-908
USAHDPE Blow MouldingOffer Given6,650827
ChinaHDPE FilmOffer Given7,000-7,300871-908
ChinaHDPE FilmPrice List7,600945
IranHDPE FilmOffer Given7,200-7,300896-908
Middle EastHDPE FilmOffer Given7,400-7,500920-933
ChinaHDPE Pipe (PE 100)Offer Given8,200-8,3001,020-1,032
ChinaHDPE Pipe (PE 100)Price List8,700-8,8001,082-1,095
ChinaHDPE YarnPrice List6,800-7,000846-871
ChinaLDPE FilmOffer Given7,100-7,450883-927
ChinaLDPE FilmPrice List7,000-7,700871-958
IndiaLDPE FilmOffer Given7,100-7,200883-896
IranLDPE FilmOffer Given7,000871
Middle EastLDPE FilmOffer Given7,800970
ChinaLLDPE Film C4Offer Given6,400-6,650796-827
ChinaLLDPE Film C4Price List6,400-6,800796-846
IranLLDPE Film C4Offer Given6,400-6,500796-809
MalaysiaLLDPE Film C4Offer Given6,350-6,400790-796
Middle EastLLDPE Film C4Offer Given6,800-6,820846-848
South KoreaLLDPE Film C4Offer Given6,700-6,750833-840
ChinaLLDPE Film C4 (CTO)*Offer Given6,300-6,450784-802
Description: *CTO = coal-based materials

Transactions for import PE between May 11 to May 15 on CIF China Main Port basis

OriginProductTransaction TypeOffers (USD/ton)Payment Term
Middle EastHDPE Blow MouldingOffer Given810LC at sight
Middle EastHDPE Blow MouldingOffer Received740-750LC at sight
Middle EastHDPE Blow MouldingSell Idea770LC at sight
Middle EastHDPE FilmOffer Given760-820LC at sight
Middle EastHDPE FilmOffer Received735-760LC at sight
North AmericaHDPE FilmOffer Received755LC 90 days
Southeast AsiaHDPE FilmOffer Given810LC at sight
Southeast AsiaHDPE FilmOffer Received775-820LC at sight
Southeast AsiaHDPE FilmSold810LC at sight
Middle EastHDPE Pipe (PE 100)Offer Given870LC at sight
Southeast AsiaHDPE YarnOffer Received775-790LC at sight
Indian SubcontinentLDPE FilmOffer Given800LC at sight
Middle EastLDPE FilmOffer Given820-860LC at sight
Middle EastLDPE FilmOffer Received820-860LC at sight
Southeast AsiaLDPE FilmOffer Received900LC at sight
Indian SubcontinentLLDPE Film C4Offer Given700LC at sight
Middle EastLLDPE Film C4Offer Given730-780LC at sight
Middle EastLLDPE Film C4Offer Received740-780LC at sight
North AmericaLLDPE Film C4Offer Received730-740LC 90 days
Southeast AsiaLLDPE Film C4Offer Given790LC at sight
Southeast AsiaLLDPE Film C4Offer Received800LC at sight
Southeast AsiamLLDPE C6Offer Given900-920LC at sight
Southeast AsiamLLDPE C6Offer Received920**-1,015*LC at sight
Southeast AsiamLLDPE C6Sold900LC at sight
Description: *Offers before adjustment **Offers after adjustment

Transactions for local/localized PE between May 18 to May 22 on cash, EXW China basis (including 13% VAT in CNY terms, excluding VAT in USD terms)

OriginProductTransaction TypeOffers (CNY/ton)Equivalent in USD/ton
ChinaHDPE Blow MouldingPrice List7,100-7,300883-908
RussiaHDPE Blow MouldingOffer Given6,150765
ChinaHDPE FilmOffer Given7,100-7,200883-896
ChinaHDPE FilmPrice List7,400920
IranHDPE FilmOffer Given7,200-7,400896-920
KuwaitHDPE FilmOffer Given7,450927
MalaysiaHDPE FilmOffer Given7,350914
ChinaHDPE Pipe (PE 100)Price List8,8001,095
ChinaHDPE YarnPrice List6,800-7,000846-871
IndiaHDPE YarnOffer Given7,100883
South KoreaHDPE YarnOffer Given7,100883
ChinaLDPE FilmOffer Given7,350-7,550914-939
ChinaLDPE FilmPrice List7,000-7,650871-952
IranLDPE FilmOffer Given7,500933
ChinaLDPE Film (CTO)*Sold7,350-7,480914-930
ChinaLLDPE Film C4Offer Given6,450-6,650802-827
ChinaLLDPE Film C4Price List6,500-6,700809-833
ChinaLLDPE Film C4Sold6,450802
MalaysiaLLDPE Film C4Offer Given6,800846
Description: *CTO = coal-based materials

Transactions for import PE between May 18 to May 22 on LC at sight, CIF China Main Port basis

OriginProductTransaction TypeOffers (USD/ton)
QatarHDPE Blow MouldingOffer Given840
QatarHDPE Blow MouldingOffer Received780-840
USAHDPE Blow MouldingOffer Received750
IndiaHDPE FilmOffer Received795
QatarHDPE FilmOffer Given810
QatarHDPE FilmOffer Received790-810
SaudiHDPE FilmOffer Given820
SaudiHDPE FilmOffer Received750-820
ThailandHDPE FilmOffer Given820-870
ThailandHDPE FilmSold820
USAHDPE FilmOffer Received720
IndiaHDPE Pipe (PE 100)Offer Received890
South KoreaHDPE Pipe (PE 100)Offer Given850-860
South KoreaHDPE Pipe (PE 100)Sold850-860
ThailandHDPE Pipe (PE 100)Offer Given950
SaudiHDPE Pipe Black (100)Offer Received990*
IndiaHDPE YarnOffer Given810
IndiaHDPE YarnOffer Received790
South KoreaHDPE YarnOffer Given810
ThailandHDPE YarnOffer Given790-800
UzbekistanHDPE YarnSold770
QatarLDPE FilmOffer Given830
QatarLDPE FilmOffer Received830
SaudiLDPE FilmOffer Given860
SaudiLDPE FilmOffer Received840-860
IndiaLLDPE Film C4Offer Received765-775
QatarLLDPE Film C4Offer Given770
QatarLLDPE Film C4Offer Received770
SaudiLLDPE Film C4Offer Given770-780
SaudiLLDPE Film C4Offer Received770
ThailandLLDPE Film C4Offer Given800
ThailandLLDPE Film C4Offer Received800
ThailandLLDPE Film C4Sold800
USALLDPE Film C4Offer Received720-740
ThailandmLLDPE C6Offer Given930
ThailandmLLDPE C6Sold930
Description: *Offers on LC 90 days

Transactions for local/localized PE between May 25 to May 29 on cash, EXW China basis (including 13% VAT in CNY terms, excluding VAT in USD terms)

OriginProductTransaction TypeOffers (CNY/ton)Equivalent in USD/ton
ChinaHDPE Blow MouldingOffer Given7,100883
ChinaHDPE Blow MouldingPrice List7,100-7,400883-920
ChinaHDPE FilmOffer Given7,200-7,400896-920
ChinaHDPE FilmPrice List7,400-7,500920-933
MalaysiaHDPE FilmOffer Given7,200-7,300896-908
Middle EastHDPE FilmOffer Given7,400-7,500920-933
RussiaHDPE FilmOffer Given6,800846
ChinaHDPE Pipe (PE 100)Price List8,200-8,4001,020-1,045
ChinaHDPE YarnPrice List6,900-7,000858-871
ChinaLDPE FilmOffer Given7,150-7,700889-958
Middle EastLDPE FilmOffer Given7,500-7,600933-945
ChinaLDPE Film (CTO)*Sold7,300908
ChinaLLDPE Film C4Offer Given6,500-6,750809-840
ChinaLLDPE Film C4Price List6,650-6,750827-840
ChinaLLDPE Film C4 (CTO)*Sold6,450802
Description: *CTO = coal-based materials

Transactions for import PE between May 25 to May 29 on LC at sight, CIF/CFR China Main Port basis

OriginProductTransaction TypeOffers (USD/ton)
Middle EastHDPE Blow MouldingOffer Given750-820
Far East AsiaHDPE FilmOffer Given820
Middle EastHDPE FilmOffer Given780-820
Middle EastHDPE FilmOffer Received760-830
North AmericaHDPE FilmOffer Given760
North AmericaHDPE FilmSold755-760
Middle EastHDPE Pipe Black(100)Offer Received1,050-1,080
Far East AsiaHDPE YarnSold810*
Middle EastLDPE FilmOffer Given820-850
Middle EastLDPE FilmOffer Received820-870
Indian SubcontinentLLDPE Film C4Offer Given750-770
Middle EastLLDPE Film C4Offer Given750-770
Middle EastLLDPE Film C4Offer Received760-820
Middle EastLLDPE Film C4Purchased760
Southeast AsiamLLDPE C6Offer Given930
Description: *Offers on LC 90 days

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

Published on June 4, 2020 10:47 AM (GMT+8)
Last Updated on June 4, 2020 10:47 AM (GMT+8)

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