- China’s domestic PP prices have gained some strength, buoyed by a recent rebound in crude oil prices and futures prices. On Tuesday, June 16, crude oil prices jumped by more than 3%, holding on to advances from the previous session, supported by ongoing output cuts and after the International Energy Agency (IEA) said in its monthly report that demand loss for 2020 will be less than previously expected. The recent jump in crude oil prices has also sent futures prices soaring. As of Wednesday, June 17, SSESSMENTS.COM noted that September 2020 PP prices on the Dalian Commodity Exchange increased by CNY46/ton ($6.5/ton) as observed at 2:30 PM GMT+8, open at CNY7,460/ton ($906/ton) by morning trading session. In response to the firmer crude oil and futures prices, a Chinese trader has adjusted up its PP offer further. As compared to Tuesday's level, the trader applied a price increase of CNY100/ton ($14/ton) on local PP Homo Raffia cargoes.
- On the supply front, market sources in China shared with SSESSMENTS.COM on the latest updates of the inventory level of the two leading polyolefins producers in the country. As of Wednesday, June 17, the inventory level of polyolefins at both producers stood at 725,000 tons, reduced significantly by 50,000 tons from Tuesday’s level.
