Unpredictable Adjustment On PE Prices In China After The Labour Day Holiday
- Stronger futures market provided some supports on local PE prices
- China’s PE market is still on a holiday mood
- Outlook for China’s PE market moved into two directions
China market has just resumed on May 6 after the Labor Day holiday, however, PE prices in the country adjusted in contrast with market players’ expectations. Last week, most of the Chinese market players predicted that the accumulated inventory after the holiday would drag PE prices down. However, based on the data collected by SSESSMENTS.COM, China’s PE market is on an uptrend after the holiday as supported by the increases in PE prices in the futures market. In the local market, offers for HDPE Blow Moulding increased between CNY300-500/ton ($42-71/ton), HDPE Film by CNY300/ton ($42/ton), and CNY100/ton ($14/ton) for HDPE Pipe (PE 100) and HDPE Yarn, all compared to last week’s levels. The deals for localized Saudi HDPE Film cargoes captured higher between CNY100-150/ton ($14-21/ton) compared to last week’s deals. During the same timeframe, offers for localized Iranian HDPE Film cargoes increased by CNY100/ton ($14/ton). However, a trader is planning to make a further upward price adjustment between CNY50-100/ton ($7-14/ton).
Upward price adjustment also captured on local LDPE Film and LLDPE Film C4. SSESSMENTS.COM noted that offers for local LDPE Film and LLDPE Film C4 increased between CNY200-450/ton ($28-63/ton) and CNY250/ton ($35/ton) respectively. For localized cargoes, Qatari LDPE Film offers went up between CNY100-150/ton ($14-21/ton). In the import market, HDPE Film and LLDPE Film C4 of US origin surged by $20-30/ton. Likewise, Thai HDPE Film and LLDPE Film C4 increased by $10/ton and $20/ton respectively. All changes are on a weekly comparison.
The overall buying sentiment for PE resins remains subdued as the market has just resumed after the long holiday. Most of the buyers are still in a holiday mood. On the supply front, SSESSMENTS.COM was informed that the inventory of the two leading Chinese polyolefins producers increased by 155,000 tons during the holiday, recorded at 950,000 tons on Wednesday morning, May 6. As of May 7, the inventory reported at 935,000 tons, digested by 15,000 tons from a day earlier.
The outlook for China’s PE market moved into two directions. Some market players believe that the increases in crude oil prices and the stronger futures market would support local and import PE prices to increase. While some others opined to SSESSMENTS.COM that PE prices still have room to decrease since the gap between ethylene and current PE prices is considered healthy.
Click below to view related stories and content on China PE:
WeeklySSESSMENTS: China PE Prices W/C April 27
NewsSSESSMENTS: Local PE, PP Prices In China Market May 6
NewsSSESSMENTS: Bullish Sentiment On-Post Labour Day Holiday Triggered Thai PE Producer To Adjust Offers To China
Local/localized PE offers on cash, EXW China basis (including 13% VAT in CNY term, excluding VAT in USD term)
| Origin | Product | Transaction Type | Offers (CNY/ton) | Equivalent in USD/ton |
|---|
| China | HDPE Blow Moulding | Price List | 7,100-7,300 | 885-910 |
| China | HDPE Film | Price List | 7,500 | 935 |
| Iran | HDPE Film | Offer Given | 7,250-7,300 | 904-910 |
| Iran | HDPE Film | Sold | 7,200 | 898 |
| Saudi | HDPE Film | Sold | 6,800 | 848 |
| China | HDPE Pipe (PE 100) | Price List | 8,200 | 1,023 |
| China | HDPE Yarn | Price List | 6,900-7,000 | 860-873 |
| China | LDPE Film | Price List | 7,200-7,600 | 898-948 |
| Qatar | LDPE Film | Sold | 7,350-7,450 | 916-929 |
| China | LLDPE Film C4 | Price List | 6,650-6,900 | 829-860 |
Import PE offers on LC at sight/LC 90 days, CIF China Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Payment Term |
|---|
| North America | HDPE Blow Moulding | Sold | 700-715 | LC at sight |
| North America | HDPE Blow Moulding | Sold | 700-710 | LC 90 days |
| Middle East | HDPE Film | Offer Received | 770 | LC at sight |
| Middle East | HDPE Film | Sold | 770 | LC at sight |
| North America | HDPE Film | Offer Received | 745 | LC 90 days |
| North America | HDPE Film | Purchased | 710 | LC 90 days |
| North America | HDPE Film | Sold | 730 | LC at sight |
| North America | HDPE Film | Sold | 700-720 | LC 90 days |
| Southeast Asia | HDPE Film | Offer Given | 810 | LC at sight |
| Southeast Asia | HDPE Yarn | Offer Given | 780 | LC at sight |
| North America | LLDPE Film C4 | Offer Received | 720 | LC 90 days |
| North America | LLDPE Film C4 | Sold | 690 | LC at sight |
| Southeast Asia | LLDPE Film C4 | Offer Given | 790 | LC at sight |
Tags: Asia Pacific,China,English,NEA,PE,Weekly
Published on May 7, 2020 1:50 PM (GMT+8)
Last Updated on May 7, 2020 6:03 PM (GMT+8)
