- Local and import offers were on the same trend in general
- Digestion rate of inventory of the two leading polyolefins producers was considered healthy
- Significant amount of import cargoes entering China market would overshadow pricing outlook
According to SSESSMENTS.COM’s pricing database, China PP market began May with an uptrend in local prices. Started trading activities on May 6 after the Labor Day holiday, local PP offers via producers and traders in China market increased between CNY100-400/ton ($14-56/ton) compared offers recorded on April 27 or before the holiday as supported by firmer crude oil and futures prices. However, the uptrend could not sustain. Coming to the week commencing May 11, local PP Homo Raffia and PP Random Copolymer offers dropped by CNY100-200/ton ($14-28/ton) and CNY400/ton ($56/ton) respectively on weekly comparison owing to weak sentiment following announcement from the Bureau of Commerce of Zhejiang City to suspend export of medical supplies after customs authorities issued a list of unqualified medical-related products. By the second half of May, local PP market got its momentum back. During this particular period, PP Homo Raffia offers from producers and traders recorded an increase of between CNY100-200/ton ($14-28/ton) on week-on-week comparison on the back of relatively tight domestic supply and firmer feedstock prices.
In the import market, offers from foreign suppliers were scarce in the first week of May. A South Korean PP producer reported receiving lots of inquiries from buyers yet could not fulfil the request as the company had sold out allocation for May shipment to China since the fourth week of April. In the second week of May, June shipment PP offers from a Malaysian producer to China surfaced with an increase of $30-40/ton from May shipment offers, while Middle Eastern PP offers maintained stable on a weekly comparison. The leading Indian petrochemical producer started offering to China on the week commencing May 18. Compared to April shipment, the Indian producer’s offers for PP Homo Raffia emerged at $50/ton higher for July shipment cargoes. In the final week of May, the leading Indian petrochemical producer increased PP Homo Raffia offers by another $60/ton from a week earlier, captured at $860/ton on LC at sight, CIF China Main Port basis. The producer also slashed allocation to export market and will focus on selling in the domestic market following the improved demand in India. During the same timeframe, SSESSMENTS.COM noted that import PP Homo Raffia offers of Saudi origin broke $900/ton-threshold level. On May 29, June shipment offers for PP Homo Raffia and PP Copolymer grades from a United Arab Emirates producer surfaced with an increment of $60/ton on a month-on-month comparison.
In general, demand for PP in China was categorized as dull during May. Despite the uptrend in PP prices by the first week, some buyers kept purchases on a need basis, yet market confidence was boosted on the back of firmer energy market. However, the announcement from the Bureau of Commerce of Zhejiang City to suspend export of medical supplies by the second week hurt buyers’ confidence. For the second half of May, buying sentiment improved slightly as supported by relatively tight domestic supply, firmer futures market and higher propylene prices. SSESSMENTS.COM noted that the inventory of the two leading Chinese polyolefins producers was digested fast during this period. Polyolefins inventory at both producers recorded a reduction of 165,000 tons and 100,000 tons for the third and fourth week, respectively. By the last trading day (May 29), inventory of the two leading Chinese polyolefins producers recorded at 690,000 tons. Despite that, market sources told SSESSMENTS.COM that the fast digestion rate of inventory of the two producers could not be translated as robust demand yet due to maintenance shutdown at the producers’ plants. The actual demand from the downstream market was still weak; most converters were running at 60-70% due to slow sales, only mask manufacturers run at maximum capacity.
In the production sector, Sinopec SABIC Tianjin Petrochemical Co Ltd (SSTPC) shut its 450,000 tons/year PP plant on May 14 for sixty-days maintenance work. Additionally, fire at LG Chemical’s Daesan plant on May 19 only affected supply of metallocene PP, sources with knowledge of the matter told SSESSMENTS.COM.
Looking into June, some players opined that local and import PP prices will remain on the uptrend provided that crude oil and propylene prices continue to move higher. However, some others opined that the considerable amount of import cargoes entering China market would overshadow pricing outlook. For demand, players believe resins demand will improve along with expectations of end-product sales recovery following China economic revival from Coronavirus impact. Particularly for PP Block Copolymer demand, “one head, one helmet” regulation which will come into effect from June 1 is expected to boost sales for this grade as China will need around 200 million pieces of helmets.
Click below to view related stories and content on China PP market:
MonthlySSESSMENTS: April China PP Prices
WeeklySSESSMENTS: China PP Prices W/C May 4
WeeklySSESSMENTS: China PP Prices W/C May 11
WeeklySSESSMENTS: China PP Prices W/C May 18
WeeklySSESSMENTS: China PP Prices W/C May 25
NewsSSESSMENTS: South Korean PP Producer Sold Out May Shipment Allocation To China
NewsSSESSMENTS: Chinese Players Unveil Factor Affecting Inventory Digestion Rate Of Major Polyolefins Producers In The Country
NewsSSESSMENTS: July Shipment PP Offers From Leading Indian Petrochemical Producer To China Surfaced Following Local Market Trend
NewsSSESSMENTS: Futures Price Movements Unable To Boost Buying Sentiment In China PE PP Market, Trader Discloses The Reason
NewsSSESSMENTS: Indian PP Supplier Revised Export Offers Following Domestic Demand Improvement, Deemed To Be Unworkable
NewsSSESSMENTS: Saudi PP Homo Raffia Offers To China Touching A New Threshold Level, PE Prices Posted New Adjustments
NewsSSESSMENTS: June Shipment PE, PP Offers From United Arab Emirates Producer Surfaced In China
NewsSSESSMENTS: Chinese PP Producer Underlined Factors Spark Adjustment On Local Offers, Foresee Sustainability Of Current Price Trend
Transactions for local PP between May 1 to May 8 on cash, EXW China basis (including 13% VAT in CNY terms, excluding VAT in USD terms)
| Origin | Product | Transaction Type | Offers (CNY/ton) | Equivalent in USD/ton |
|---|
| China | PP Homo Injection | Price List | 7,900-8,200 | 979-1,017 |
| China | PP Homo Raffia | Offer Given | 8,000 | 992 |
| China | PP Homo Raffia | Price List | 7,800-8,200 | 967-1,017 |
| China | PP Homo Raffia | Sold | 8,000 | 992 |
| China | PP Impact Copolymer | Price List | 8,100 | 1,004 |
| China | PP Random Copolymer Injection | Price List | 8,500-8,700 | 1,054-1,079 |
Transactions for import PP between May 1 to May 8 on LC at sight, CIF/CFR China Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Far East Asia | PP Block Copolymer | Offer Given | 860 |
| Far East Asia | PP Block Copolymer | Offer Received | 945 |
| Far East Asia | PP Block Copolymer | Sold | 850-860 |
| Southeast Asia | PP Homo Film | Buy Idea | 850 |
| Middle East | PP Homo Injection | Offer Received | 830-840 |
| Indian Subcontinent | PP Homo Raffia | Offer Given | 800 |
| Indian Subcontinent | PP Homo Raffia | Purchased | 785 |
| Middle East | PP Homo Raffia | Offer Given | 820-830 |
| Middle East | PP Homo Raffia | Offer Received | 830-865 |
| Middle East | PP Homo Raffia | Purchased | 800 |
| North America | PP Homo Raffia | Offer Received | 810-825 |
| South America | PP Homo Raffia | Offer Received | 790 |
| Far East Asia | PP Random Copolymer Injection | Offer Received | 995 |
Transactions for local/localized PP between May 11 to May 15 on cash, EXW China basis (including 13% VAT in CNY terms, excluding VAT in USD terms)
| Origin | Product | Transaction Type | Offers (CNY/ton) | Equivalent in USD/ton |
|---|
| China | PP Homo Injection | Offer Given | 7,300-7,700 | 905-955 |
| China | PP Homo Injection | Price List | 7,900-9,050 | 979-1,122 |
| China | PP Homo Raffia | Offer Given | 7,300-7,700 | 905-955 |
| China | PP Homo Raffia | Price List | 7,300-8,200 | 905-1,017 |
| Southeast Asia | PP Homo Raffia | Sold | 7,200** | 893 |
| China | PP Homo Raffia (CTO)* | Offer Given | 7,300-7,350 | 905-911 |
| China | PP Random Copolymer Blow | Offer Given | 8,100 | 1,004 |
| China | PP Random Copolymer Injection | Offer Given | 8,900 | 1,103 |
| China | PP Random Copolymer Injection | Price List | 8,000-8,600 | 992-1,066 |
Description: *CTO = coal-based materials **Offers on TT
Transactions for import PP between May 11 to May 15 on LC at sight, CIF China Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Far East Asia | PP Block Copolymer | Offer Received | 940 |
| Southeast Asia | PP Homo Injection | Offer Received | 850-870 |
| Indian Subcontinent | PP Homo Raffia | Offer Given | 820-830 |
| Middle East | PP Homo Raffia | Offer Given | 820-830 |
| Middle East | PP Homo Raffia | Offer Received | 860 |
| Southeast Asia | PP Homo Raffia | Offer Given | 850-880 |
| Southeast Asia | PP Homo Raffia | Offer Received | 850-870 |
| Southeast Asia | PP Homo Raffia | Sold | 850 |
| Far East Asia | PP Random Copolymer Blow | Offer Received | 990 |
| Middle East | PP Random Copolymer Blow | Offer Given | 920 |
| Northeast Asia | PP Random Copolymer Injection | Offer Given | 910 |
| Southeast Asia | PP Random Copolymer Injection | Offer Received | 1,000 |
Transactions for local PP between May 18 to May 22 on cash, EXW China basis (including 13% VAT in CNY terms, excluding VAT in USD terms)
| Origin | Product | Transaction Type | Offers (CNY/ton) | Equivalent in USD/ton |
|---|
| China | PP Homo Injection | Offer Given | 7,800-8,000 | 967-992 |
| China | PP Homo Injection | Price List | 7,800-8,750 | 967-1,085 |
| China | PP Homo Raffia | Offer Given | 7,500-7,800 | 930-992 |
| China | PP Homo Raffia | Price List | 7,300-7,800 | 905-967 |
| China | PP Homo Raffia | Sold | 7,600 | 942 |
| China | PP Homo Raffia (CTO)* | Sold | 7,400 | 917 |
| China | PP Random Copolymer Blow | Offer Given | 8,400-8,600 | 1,041-1,066 |
| China | PP Random Copolymer Injection | Price List | 7,800-8,500 | 967-1,054 |
Description: *CTO = coal-based materials
Transactions for import PP between May 18 to May 22 on LC at sight, CIF China Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Far East Asia | PP Block Copolymer | Offer Given | 890 |
| Far East Asia | PP Block Copolymer | Offer Received | 970 |
| Northeast Asia | PP Block Copolymer | Offer Received | 950-1,000 |
| Indian Subcontinent | PP Homo Injection | Offer Received | 850 |
| Southeast Asia | PP Homo Injection | Offer Received | 895 |
| Indian Subcontinent | PP Homo Raffia | Offer Received | 800-855 |
| Indian Subcontinent | PP Homo Raffia | Purchased | 800 |
| Middle East | PP Homo Raffia | Offer Received | 890 |
| North America | PP Homo Raffia | Offer Received | 810 |
| Far East Asia | PP Random Copolymer Blow | Offer Given | 1,020 |
Transactions for local PP between May 25 to May 29 on cash, EXW China basis (including 13% VAT in CNY terms, excluding VAT in USD terms)
| Origin | Product | Transaction Type | Offers (CNY/ton) | Equivalent in USD/ton |
|---|
| China | PP Homo Injection | Offer Given | 7,700-7,800 | 955-967 |
| China | PP Homo Injection | Price List | 7,800-8,850 | 967-1,097 |
| China | PP Homo Raffia | Offer Given | 7,600-7,800 | 942-967 |
| China | PP Homo Raffia | Price List | 7,600-7,800 | 942-967 |
| China | PP Homo Raffia | Sold | 7,800 | 967 |
| China | PP Homo Raffia (CTO)* | Sold | 7,420 | 920 |
| China | PP Random Copolymer Injection | Price List | 7,900-8,500 | 979-1,054 |
Description: *CTO = coal-based materials
Transactions for import PP between May 22 to May 29 on CIF/CFR China Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Payment Term |
|---|
| Far East Asia | PP Block Copolymer | Offer Given | 890 | LC at sight |
| Far East Asia | PP Block Copolymer | Sold | 890 | LC at sight |
| Middle East | PP Block Copolymer | Offer Received | 860 | LC at sight |
| Far East Asia | PP Homo Injection | Offer Given | 860 | LC at sight |
| Indian Subcontinent | PP Homo Injection | Sold | 825 | LC 90 days |
| Middle East | PP Homo Injection | Offer Given | 870 | LC at sight |
| Far East Asia | PP Homo Raffia | Offer Given | 860 | LC at sight |
| Indian Subcontinent | PP Homo Raffia | Offer Given | 820-830 | LC at sight |
| Indian Subcontinent | PP Homo Raffia | Offer Received | 860 | LC at sight |
| Indian Subcontinent | PP Homo Raffia | Sold | 835 | LC 90 days |
| Middle East | PP Homo Raffia | Buy Idea | 800-805 | LC at sight |
| Middle East | PP Homo Raffia | Offer Given | 860-865 | LC at sight |
| Middle East | PP Homo Raffia | Offer Received | 830-900 | LC at sight |
| Far East Asia | PP Random Copolymer Blow | Offer Given | 990 | LC at sight |
| Middle East | PP Random Copolymer Blow | Offer Received | 920 | LC at sight |
| Far East Asia | PP Random Copolymer Injection | Sold | 900 | LC at sight |
Tags: Asia Pacific,China,English,Monthly,NEA,PP
Published on June 1, 2020 12:38 PM (GMT+8)
Last Updated on June 1, 2020 12:40 PM (GMT+8)
