Pricelist for local HDPE pipe in China on cash, EXW China basis (CNY terms including 13% VAT, equivalent in USD excludes VAT)
Tight supply and peak demand season amid the resumption of construction activities during warmer weather has boosted high-density polyethylene (HDPE) pipe prices in China. Market sources informed SSESSMENTS.COM that spot HDPE Pipe prices in the country stood between CNY8,200-8,500/ton ($1,023-1,060/ton) on May 8, an increase of CNY300/ton ($42/ton) from May 7. Compared to the levels on April 8, local HDPE Pipe prices have risen by CNY1,000/ton ($141/ton). All prices are on cash, EXW China basis and including 13% VAT.
Market players also told SSESSMENTS.COM that on May 11, offers for HDPE Pipe (PE 100) increased further by another CNY200/ton ($28/ton) compared to May 8, with the latest offers for this grade recorded at CNY8,700/ton ($1,084/ton) on cash, EXW China basis and including 13% VAT.
Beijing is launching a “New Infrastructure” campaign, its 14th Five-Year Investment Plan which is expected to help transform the country into a modern, digital society. This program focuses on fifth-generation mobile network (5G), inter-city high-speed railway, inner-city rail systems, ultra-high voltage, big data centre, charging stations for new energy vehicles (NEVs), industrial internet, and artificial intelligence.
According to ICBC Standard Bank, spending on the “New Infrastructure” program will reach CNY2 trillion ($282 billion) annually, and attract at least CNY10 trillion ($1.4 trillion) of direct investment and CNY17 trillion ($2.4 trillion) of indirect investment by 2025. According to ICBC’s managing director and chief China economist Jinny Yan, the unprecedented investment package would force China to take tough decisions on its proposed CNY10 trillion ($1.4 trillion) expenditure for infrastructure this year, which equal to more than a tenth of its GDP in 2019. Projects under this plan are expected to propel the demand for pipe materials in the future.
The coronavirus pandemic has hit demand in the first quarter, forcing downstream producers to lower their operating rates. However, they have returned to normal operations on the back of a gradual recovery in infrastructure construction activities after the government relaxed virus curbs. Besides, the second quarter is typically the peak consumption season for pipe materials. Water conservation projects in north China contribute significantly to demand.
Market players reported to SSESSMENTS.COM that robust demand caused a supply tightness of HDPE pipes in north China. Planned maintenance at Sinopec SABIC Tianjin Petrochemical’s plant since May 9 and delayed cargo deliveries from PetroChina’s refineries also tightened supply further. Besides, some traders with pre-sold cargoes are now eyeing for spot cargoes to meet orders.
Tags: Asia Pacific,China,English,Freemium,NEA,News,PE
Published on May 12, 2020 12:05 PM (GMT+8)Last Updated on October 1, 2020 4:54 PM (GMT+8)
