newsssessments-local-pp-offers-in-china-continue-to-rally-breaking-new-threshold

A Chinese trader informed that local PP offers in China continue to rally, breaking a new threshold level. During the weekend of April 11-12, the prices kept moving higher as the market remained active. Based on SSESSMENTS.COM’s pricing database, the lowest PP Homo Raffia offers reported on Friday, April 10, were at CNY7,200/ton ($1,023/ton) on cash, EXW China basis and including 13% VAT. By Monday morning, April 13, PP Homo Raffia prices had reached CNY9,000/ton ($1,279/ton), soared by CNY1,800/ton ($256/ton).

SSESSMENTS.COM noted that the uptrend in local PP prices in China started to be apparent at the beginning of April after breaking below CNY6,000/ton-level ($853/ton) in March. The lowest level recorded in this particular month was CNY5,750/ton ($817/ton) on cash, EXW China basis and including 13% VAT. Compared to the level from two weeks ago, the current prices recorded at CNY3,250/ton ($462/ton) higher. The increases in local PP prices were supported by the firmer futures market and crude oil prices, reduced availability, as well as due to the speculation of traders.

SSESSMENTS.COM’s data showed that in the last two weeks, September 2020 PP futures prices on Dalian Commodity Exchange have increased by more than CNY1,000/ton ($142/ton). On April 10, the futures prices settled at CNY6,820/ton ($969/ton), CNY1,147/ton ($163/ton) higher than the settlement recorded on March 30. Marker players also told SSESSMENTS.COM that on April 13, the futures prices increased by the daily limit as soon as it opened. Therefore, the player believes that chances for further increases in PP prices this week are high.

Transactions for local PP cargoes between March 30-April 13 on cash, EXW China basis and including 13% VAT (equivalent in USD excludes VAT)

Date	Product	Transaction Type	Offers (CNY/ton)	Equivalent in USD/ton	Delivery Location
30-Mar-2020	PP Homo Raffia	Offer Given	5,800-6,400	729-805	China
31-Mar-2020	PP Homo Raffia	Offer Given	5,750-6,100	723-767	China
31-Mar-2020	PP Homo Raffia	Price List	6,500-6,600	817-830	China
31-Mar-2020	PP Homo Raffia	Price List	6,500-6,800	817-855	North China
1-Apr-2020	PP Homo Raffia	Offer Given	6,100-6,300	767-792	China
1-Apr-2020	PP Homo Raffia	Price List	6,500-6,600	817-830	China
1-Apr-2020	PP Homo Raffia	Price List	6,500-6,950	817-874	North China
2-Apr-2020	PP Homo Raffia	Offer Given	6,100-6,250	767-786	China
2-Apr-2020	PP Homo Raffia	Price List	6,300-6,400	792-805	China
2-Apr-2020	PP Homo Raffia	Price List	6,300	792	North China
3-Apr-2020	PP Homo Raffia	Offer Given	6,400-6,500	805-817	China
7-Apr-2020	PP Homo Raffia	Offer Given	6,600-7,000	830-880	China
7-Apr-2020	PP Homo Raffia (CTO)	Sold	6,830-6,840	859-860	China
7-Apr-2020	PP Homo Raffia	Price List	6,800-6,900	855-868	China
7-Apr-2020	PP Homo Raffia	Price List	6,800-7,450	855-937	North China
8-Apr-2020	PP Homo Raffia	Offer Given	6,900	868	China
8-Apr-2020	PP Homo Raffia	Price List	7,100-7,200	893-905	China
8-Apr-2020	PP Homo Raffia	Price List	7,100-7,750	893-975	North China
9-Apr-2020	PP Homo Raffia	Offer Given	7,000-7,100	880-893	China
10-Apr-2020	PP Homo Raffia	Offer Given	7,200-7,300	905	China
10-Apr-2020	PP Homo Raffia	Price List	7,600-8,000	956-1,006	China
10-Apr-2020	PP Homo Raffia	Price List	7,800-9,500*	981-1,195	North China
12-Apr-2020	PP Homo Raffia	Offer Given	7,900-8,000	993-1,006	China
13-Apr-2020	PP Homo Raffia	Offer Given	8,800-9,000	1,107-1,132	China

Description: *The same seller increased offers by CNY1,750/ton ($249/ton) compared to April 8

September 2020 PP Futures Prices On Dalian Commodity Exchange

Date	Dalian PP Settlement
30-Mar-2020	5,673
31-Mar-2020	5,791
1-Apr-2020	5,803
2-Apr-2020	6,006
3-Apr-2020	6,247
7-Apr-2020	6,569
8-Apr-2020	6,598
9-Apr-2020	6,679
10-Apr-2020	6,820

NewsSSESSMENTS: Local PP Offers In China Continue To Rally, Breaking New Threshold

Author: SSESSMENTS

NewsSSESSMENTS: Local PP Offers In China Continue To Rally, Breaking New Threshold

Author: SSESSMENTS

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