A Chinese trader told SSESSMENTS.COM that China PE and PP market is dragging down by futures prices slump and slow demand. This week, the trader received the latest import offers from a Thai PE producer. HDPE Film cargoes stand at $820/ton, while LLDPE Film C4 cargoes at $800/ton. Trader skipped purchasing the cargoes after previously buying import Thailand LLDPE Film C4 cargoes at $760/ton. All offers are on LC at sight, CIF China Main Port basis.
A trader informed that the current import LLDPE Film C4 price from Thailand is equal to CNY6,400-6,500/ton, which means profit margin is thin. The trader also tries to sell Middle East origin PE cargoes which will arrive at the port soon, but customers are taking a wait-and-see stance since the futures prices are dropping in the last two days. From Dalian Exchange Commodity today, LLDPE future prices for September 2020 settled at CNY6,230/ton ($777/ton). Market demand declined following slow consumption of plastic package goods after export orders slump due to the Coronavirus outbreak, SSESSMENTS.COM noted.
"In general, the outlook for the PE and PP market is not positive. Even though the current prices are on an upward trend, it would not sustain without a strong demand to support," the trader told SSESSMENTS.COM. Trader pointed out as an export-oriented country, China market will take some time to recover.
Click below to view related stories and content on China, PE, and PP market:
DailySSESSMENTS: China PE Price 12th May 2020
NewsSSESSMENTS: Import PE Cargoes To China Adjusted, Localized Offers Moved Following Futures Market Prices
NewsSSESSMENTS: Thai PE Producer Announced Latest Offers To China, Adjustment Captured On Certain Grade
Local/localized PE, PP offers on cash, EXW South China basis (including 13% VAT in CNY term, excluding VAT in USD term)
| Origin | Product | Transaction Type | Offers (CNY/ton) | Equivalent in USD/ton |
|---|
| Middle East | HDPE Film | Offer Given | 7,500 | 935 |
| Middle East | LDPE Film | Offer Given | 7,800 | 973 |
| Middle East | LLDPE Film C4 | Offer Given | 6,800 | 848 |
| China | LLDPE Film C4 | Offer Given | 6,600 | 823 |
| China | LLDPE Film C4 (CTO) | Offer Given | 6,400 | 798 |
| China | PP Homo Fiber | Offer Given | 8,200-8,300 | 1,023-1,035 |
| China | PP Homo Raffia | Offer Given | 7,800-7,850 | 973-979 |
Import PE, PP offers on LC at sight, CIF China Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Southeast Asia | HDPE Film | Offer Received | 820 |
| Southeast Asia | LLDPE Film C4 | Offer Received | 800 |
| Middle East | PP Homo Raffia | Offer Given | 820-830 |
Tags: Asia Pacific,China,English,NEA,News,PE,PP
Published on May 12, 2020 6:26 PM (GMT+8)
Last Updated on May 12, 2020 6:26 PM (GMT+8)
