- A global trading house contacted by SSESSMENTS.COM informed that most import cargoes this week are on an uptrend. Particularly for PP Homo Raffia, the trader’s latest offers for Saudi origin cargoes surfaced with an upward adjustment of $30/ton on a weekly comparison. The offers currently available at $890/ton on LC at sight, CIF China Main Port basis. In the last two weeks, the operation rate at the US refinery has increased following the relaxation of the epidemic prevention and lockdown measures in some parts of the country. Due to this, US crude oil prices are expected to decrease in the days to come. To avoid the possibility of crude oil futures prices moving to negative territory again, feedstock prices were adjusted higher; which led to higher PE prices, the trader commented.
- In the domestic market, a global trading house commented to SSESSMENTS.COM that the digestion rate of the two leading Chinese polyolefins producers was recorded healthy over the week. The trader cited that low stocks coupled with high feedstocks prices have supported demand in the spot market. However, the majority of converters are currently still on a cautious mode as sales for their finished products in the local and export markets are still limped by the impact of Coronavirus pandemic. As such, most of them are likely to continue keeping lean inventory. Looking ahead, the trader opined that during the first half of 2020, the market would not make any significant improvement.
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