monthlyssessments-march-china-pp-prices

Local PP prices in China were mostly on a downtrend during March, except for the first week of the month. At the beginning of the first week, offers for local PP Homo Raffia captured increased between CNY150-300/ton ($21-42/ton) compared to offers in the last week of February. In the following weeks, PP prices continued to decrease. Traders even made downward adjustments on a daily basis. By comparing price lists issued in the first week and the last week of the month by a local trader, SSESSMENTS.COM noted that the cumulative decreases on PP Homo Raffia were CNY450-700/ton ($63-99/ton). However, the decreases were much more significant when SSESSMENTS.COM compared the lowest PP Homo Raffia offers in the first week and the last week of the month. The gap was CNY1,250/ton ($176/ton) as in the last week, offers for PP Homo Raffia in the domestic China market were available at CNY5,750/ton ($810/ton) on cash, EXW China basis and including 13% VAT. For PP Random Copolymer Injection, the cumulative decreases were CNY850/ton ($120/ton). Factors causing the downtrend were the drops in crude oil and futures prices. In March, May 2020 PP future prices in Dalian Commodity Exchange have dropped by CNY957/ton ($135/ton). Domestic demand for PP that had not been fully recovered from the Coronavirus outbreak also further dragged down PP prices.

Unlike local prices, the downturn in import PP offers was clearly seen in the second half of the month while in the first half, offers from the Middle East and India were stable in a weekly comparison. Meanwhile, on a monthly comparison, offers for PP Homo Raffia from South Korea surfaced with reductions between $50-70/ton in the first week. In the second week, a South Korean PP producer withdrew offers due to the explosion at the producer’s crackers. In the week commencing March 16, market players reported to SSESSMENTS.COM that offers for cargoes of Middle East and India origins were scarce. In the week commencing March 23, offers and deals at $700/ton-level started to surface. An Indian petrochemical producer slashed offers by $40/ton to $780/ton on LC at sight, CIF China main port basis. Deals for PP Homo Raffia from the leading Indonesian polyolefins producer were concluded at $760/ton with the same payment and delivery term, $40/ton lower than the initial offer level. Offers for PP Homo Raffia from Vietnam also decreased by $40/ton in this particular week. On March 31, deals for PP Homo Raffia cargoes from India were already at $700/ton on LC at sight, CIF China main port basis.

Although the Coronavirus outbreak in China has been curbed, the PP market was still slow in March as buying sentiment affected by the Coronavirus outbreak in other countries that led to slow end-product sales. Hence, some downstream manufacturers kept operating rates at a low level. Besides, after crude oil prices dropped by more than 30% in a day on March 9, most buyers halted procurement activities or only purchased on a need basis and monitored the market as prices were expected to move lower. On the supply side, SSESSMENTS.COM was informed that the availability of local materials was abundant.

Entering April, market players predicted that PP Homo Raffia prices will continue to decrease as signs of improvements in demand could not be seen yet. A high inventory level in the local market also puts more pressure on prices, hence, a rebound in local offers will be difficult to occur. Meanwhile, import offers to China will head to $600/ton as competition between foreign suppliers becomes fiercer, SSESSMENTS.COM was told.

Range of local PP offers between March 2 to March 6 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	PP Homo Injection	Offer Given	7,100-7,400	885-923
China	PP Homo Injection	Price List	7,150-7,500	892-935
China	PP Homo Raffia	Offer Given	7,000-7,300	873-910
China	PP Homo Raffia	Sold	7,050	879
China	PP Homo Raffia	Price List	7,050-7,500	879-935
China	PP Block Copolymer	Offer Given	7,700-7,800	960-973
China	PP Random Copolymer Injection	Price List	8,700-9,100	1,085-1,135

Range of import PP offers between March 2 to March 6 on LC at sight, CIF China Main Port basis

Origin	Product	Transaction Type	Offers (USD/ton)
Far East Asia	PP Block Copolymer	Sold	900-930
Far East Asia	PP Block Copolymer	Offer Given	980
Southeast Asia	PP Block Copolymer	Offer Received	1,050-1,075
Southeast Asia	PP Block Copolymer	Bid Given	1,000
Far East Asia	PP Homo Injection	Offer Received	930-950
Far East Asia	PP Homo Injection	Offer Given	950-960
Indian Subcontinent	PP Homo Injection	Offer Given	870-880
Indian Subcontinent	PP Homo Injection	Sold	870-880
Indian Subcontinent	PP Homo Injection	Offer Received	870
Middle East	PP Homo Injection	Offer Received	860-870
Middle East	PP Homo Injection	Sold	860-870
Far East Asia	PP Homo Raffia	Offer Given	950-960
Far East Asia	PP Homo Raffia	Offer Received	930-950
Far East Asia	PP Homo Raffia	Sold	870-900
Indian Subcontinent	PP Homo Raffia	Offer Given	870-880
Indian Subcontinent	PP Homo Raffia	Offer Received	870
Middle East	PP Homo Raffia	Offer Received	840
Middle East	PP Homo Raffia	Offer Given	840-880
Middle East	PP Homo Raffia	Sold	840
Southeast Asia	PP Homo Raffia	Offer Received	995
Far East Asia	PP Random Copolymer Injection	Offer Given	1,050
Southeast Asia	PP Random Copolymer Injection	Offer Received	1,125

Range of local PP offers between March 9 to March 13 on cash, EXW China basis (including 13% VAT in CNY term, excluding VAT in CNY term)

Origin	Product	Transaction Type	Offers (CNY/ton)	Equivalent in USD/ton
China	PP Homo Injection	Price List	7,250-7,400	904-923
China	PP Homo Injection	Offer Given	6,900-7,300	860-910
China	PP Homo Raffia	Offer Given	6,700-7,200	836-898
China	PP Homo Raffia	Price List	7,150-7,550	892-942
China	PP Homo Raffia	Sold	6,900	860
China	PP Homo Raffia (CTO)	Offer Given	6,850-6,900	854-860
China	PP Random Copolymer Injection	Price List	8,650-9,100	1,079-1,135

Range of import PP offers between March 9 to March 13 on LC at sight, CIF China Main Port basis

Origin	Product	Transaction Type	Offers (USD/ton)
Middle East	PP Block Copolymer	Offer Received	1,030
Middle East	PP Homo Injection	Offer Given	870-880
Indian Subcontinent	PP Homo Raffia	Offer Given	870-880
Indian Subcontinent	PP Homo Raffia	Buy Idea	840-850
Middle East	PP Homo Raffia	Offer Given	850-880
Middle East	PP Homo Raffia	Offer Received	840
Southeast Asia	PP Homo Raffia	Offer Received	930
Southeast Asia	PP Homo Raffia	Offer Given	890
Middle East	PP Random Copolymer Injection	Offer Received	1,060

Range of local PP offers between March 16 to March 20 on cash, EXW China basis (including 13% VAT in CNY term and excluding VAT in USD term)

Origin	Product	Transaction Type	Offers (CNY/ton)	Equivalent in USD/ton
China	PP Block Copolymer	Offer Given	8,000-8,200	998-1,023
China	PP Homo Injection	Price List	7,050-7,200	879-898
China	PP Homo Injection	Offer Given	6,800-7,200	848-898
China	PP Homo Raffia	Offer Given	6,550-7,000	817-873
China	PP Homo Raffia	Price List	6,600-7,100	823-885
China	PP Random Copolymer Injection	Price List	8,150-8,600	1,016-1,072

Range of import PP offers between March 16 to March 20 on LC at sight, CIF China Main Port basis

Origin	Product	Transaction Type	Offers (USD/ton)
Far East Asia	PP Block Copolymer	Offer Given	950
Southeast Asia	PP Block Copolymer	Offer Received	890
Far East Asia	PP Homo Injection	Offer Given	900
Far East Asia	PP Homo Raffia	Offer Given	900
Middle East	PP Homo Raffia	Offer Given	840-850
Southeast Asia	PP Homo Raffia	Offer Given	880

Range of local PP offers between March 23 to March 27 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	PP Homo Injection	Offer Given	6,600-6,800	823-848
China	PP Homo Injection	Price List	6,700-7,200	836-898
China	PP Homo Raffia	Offer Given	6,300-6,800	786-848
China	PP Homo Raffia	Price List	6,500-7,000	811-873
China	PP Homo Raffia (CTO)	Offer Given	6,600	823
China	PP Random Copolymer Injection	Price List	7,850-8,400	979-1,048

Range of import PP offers between March 23 to March 27 on LC at sight, CIF/CFR China Main Port basis

Origin	Product	Transaction Type	Offers (USD/ton)	Delivery Term
Far East Asia	PP Block Copolymer	Offer Given	880-950	CIF
Middle East	PP Block Copolymer	Offer Received	820	CIF
Southeast Asia	PP Block Copolymer	Offer Given	990	CIF
Southeast Asia	PP Block Copolymer	Offer Received	1,030	CIF
Far East Asia	PP Homo Injection	Offer Given	860	CIF
Southeast Asia	PP Homo Injection	Offer Received	840	CIF
Far East Asia	PP Homo Raffia	Offer Given	860-920	CIF
Indian Subcontinent	PP Homo Raffia	Offer Received	780-830	CIF
Indian Subcontinent	PP Homo Raffia	Offer Given	780	CIF
Middle East	PP Homo Raffia	Offer Given	840-880	CIF
Middle East	PP Homo Raffia	Offer Received	800-820	CIF
Southeast Asia	PP Homo Raffia	Offer Given	800	CIF
Southeast Asia	PP Homo Raffia	Offer Received	840	CIF
Southeast Asia	PP Homo Raffia	Bid Received	760	CIF
Southeast Asia	PP Homo Raffia	Purchased	800	CFR
Southeast Asia	PP Homo Raffia	Purchased	760-800	CIF
Far East Asia	PP Random Copolymer Injection	Offer Given	1,010	CIF
Middle East	PP Random Copolymer Injection	Offer Received	880	CIF
Southeast Asia	PP Random Copolymer Injection	Offer Given	1,060	CIF

Range of local PP offers between March 30 to March 31 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	PP Homo Film	Offer Given	6,200-6,300	773-786
China	PP Homo Injection	Offer Given	5,800-5,850	723-730
China	PP Homo Injection	Price List	6,700-7,200	836-898
China	PP Homo Raffia	Offer Given	5,750-6,200	717-773
China	PP Homo Raffia (CTO)	Offer Given	5,900-6,100	736-761
China	PP Homo Raffia	Price List	6,500-6,800	811-848
China	PP Random Copolymer Injection	Price List	7,850-8,400	979-1,048

Range of import PP offers between March 30 to March 31 on LC at sight, CIF/CFR China Main Port basis

Origin	Product	Transaction Type	Offers (USD/ton)
Far East Asia	PP Homo Injection	Offer Received	800
Middle East	PP Homo Injection	Offer Given	710-740
Indian Subcontinent	PP Homo Raffia	Sold	700
Middle East	PP Homo Raffia	Offer Given	710-740

MonthlySSESSMENTS: March China PP Prices

Author: SSESSMENTS

MonthlySSESSMENTS: March China PP Prices

Author: SSESSMENTS

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