newsssessments-futures-price-movements-affect-buying-sentiment-in-china-domestic-market-supply-factor-determines-pricing-for-import-cargoes

As SSESSMENTS.COM noted, futures price movements have affected buying sentiment in China domestic market while supply factor determines pricing for import cargoes to the country. On April 27, local and localized PE prices in the China market increased between CNY50-100/ton ($7-14/ton) as compared to last Friday’s level following the increases in the futures market. Buyers were showing a better buying sentiment during this time as inventory levels of the two leading China polyolefins producers decreased by 300,000 tons from Sunday’s level, recorded at 800,000 tons as of Monday, April 27.

The lower inventory level of the two leading Chinese polyolefins producers also triggered foreign suppliers to adjust up offers to China. A South Korean producer increased offers for HDPE Film cargoes by $30/ton as compared to last week’s level, available at $750/ton on LC 90 days, CIF China main port basis. However, the deals were achieved at $10/ton lower than the initial offer level. For Thai PE cargoes, the stronger futures market and limited supply from the producer’s end have supported the upward price adjustment. Offers for HDPE Film surged by $20/ton as compared to last week, while LLDPE Film C4 offers moved up by $30/ton as compared to last week’s deals, SSESSMENTS.COM was told.

However, as futures prices started to decrease by Tuesday morning (April 28), buying sentiment in China PE market dampens. September 2020 LLDPE prices in the Dalian Commodity Exchange decreased CNY40/ton ($5/ton) day on day, settling at CNY6,160/ton ($870/ton) by Tuesday settlement. At the moment, buyers become more cautious in procuring materials, most tend to purchase on a hand-to-mouth basis, SSESSMENTS.COM was told.

Local/localized PE offers on cash, EXW China basis (including 13% VAT in CNY terms, all equivalent in USD excluding VAT)

Origin	Product	Transaction Type	Offers (CNY/ton)	Equivalent in USD/ton
China	HDPE Blow Moulding	Price List	6,800	850
China	HDPE Film	Price List	7,200	899
China	HDPE Film	Offer Given	7,100-7,300	887-912
Iran	HDPE Film	Offer Given	6,800-7,100	850-887
Malaysia	HDPE Film	Offer Given	6,500	812
Russia	HDPE Film	Offer Given	6,450	806
China	HDPE Pipe (PE 100)	Price List	8,100	1,012
China	HDPE Yarn	Price List	6,900	862
China	LDPE Film	Price List	7,000-7,450	875-931
China	LDPE Film	Offer Given	7,200-7,300	899-912
Malaysia	LDPE Film	Offer Given	7,200	899
Saudi	LDPE Film	Offer Given	7,400	924
China	LLDPE Film C4	Price List	6,400-6,650	780-831
China	LLDPE Film C4	Offer Given	6,300-6,450	787-806
Iran	LLDPE Film C4	Offer Given	6,400	780

Import PE offers, CIF China Main Port basis

Origin	Product	Transaction Type	Offers (USD/ton)	Payment Term
North America	HDPE Blow Moulding	Sold	700	LC 90 days
Far East Asia	HDPE Film	Offer Given	750	LC 90 days
Far East Asia	HDPE Film	Sold	740	LC 90 days
Middle East	HDPE Film	Offer Received	800	LC at sight
Middle East	HDPE Film	Bid Given	710	LC at sight
Middle East	HDPE Film	Offer Given	730-750	LC at sight
North America	HDPE Film	Sold	705-710	LC 90 days
Southeast Asia	HDPE Film	Offer Given	800-810	LC at sight
Southeast Asia	HDPE Film	Offer Received	820-830	LC at sight
Southeast Asia	HDPE Film	Bid Given	700	LC at sight
Southeast Asia	HDPE Film	Sold	800	LC at sight
Southeast Asia	HDPE Yarn	Offer Given	780-790	LC at sight
Middle East	LDPE Film	Offer Given	770-800	LC at sight
Southeast Asia	LDPE Film	Offer Given	810-830	LC at sight
Middle East	LLDPE Film C4	Offer Given	690-710	LC at sight
Southeast Asia	LLDPE Film C4	Offer Given	770	LC at sight
Southeast Asia	LLDPE Film C4	Bid Given	700	LC at sight
Southeast Asia	LLDPE Film C4	Offer Received	820-830	LC at sight
Southeast Asia	mLLDPE C6	Offer Given	890	LC at sight

September 2020 LLDPE Futures Prices On Dalian Commodity Exchange

Date	Settlement (CNY/ton)
1-Apr-2020	5,515
2-Apr-2020	5,695
3-Apr-2020	5,830
7-Apr-2020	6,060
8-Apr-2020	6,005
9-Apr-2020	6,000
10-Apr-2020	6,130
13-Apr-2020	6,395
14-Apr-2020	6,215
15-Apr-2020	6,185
16-Apr-2020	6,190
17-Apr-2020	6,240
20-Apr-2020	6,080
21-Apr-2020	5,870
22-Apr-2020	5,715
23-Apr-2020	5,960
24-Apr-2020	6,090
27-Apr-2020	6,200
28-Apr-2020	6,160

NewsSSESSMENTS: Futures Price Movements Affect Buying Sentiment In China Domestic Market, Supply Factor Determines Pricing For Import Cargoes

Author: SSESSMENTS

NewsSSESSMENTS: Futures Price Movements Affect Buying Sentiment In China Domestic Market, Supply Factor Determines Pricing For Import Cargoes

Author: SSESSMENTS

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