- In feedstock sectors, On Monday, June 29, crude oil prices slid for a second straight session on the back of growing concern over a second wave of coronavirus pandemic across the globe, leading some countries to reimpose partial lockdowns that could dampen fuel demand. The recent drop in crude oil prices has sent futures prices spiralled down. As of Monday, June 29, SSESSMENTS.COM noted that September 2020 PP prices on the Dalian Commodity Exchange decreased by CNY47/ton ($6.6/ton) as observed at 2:30 PM GMT+8, opened at CNY7,430/ton ($1,047/ton) by morning trading session. In the downstream sector, market sentiment remains mixed despite limited spot availability. The majority of buyers in the country voiced out that domestic demand is lacklustre and uncertain in the wake of falling crude oil prices.
- On the supply front, market sources in China address the current domestic supply after the Dragon Boat Festival comes to an end. According to the sources, the inventory level of two leading Chinese polyolefins producers recorded at 705,000 tons as of Monday morning, posting an increase of 50,000 tons from last Wednesday’s level (June 24). When compared to the same period last week, the volume figures showed an increase of 5,000 tons, SSESSMENTS.COM was informed.
