- After a record rally, local and futures PP prices in China collapsed on Thursday, June 4 morning. This week most traders found difficulties in selling the cargoes at high prices since the market sentiment dropped into negative ground. Following the continuous rally in futures and spot market, most buyers have shown more resistance towards the higher prices. As of Thursday, SSESSMENTS.COM noted that September 2020 PP futures on the Dalian Commodity Exchange recorded a decline of CNY57/ton ($8/ton) as observed at 2 PM (GMT+8), open at CNY7,478/ton ($1,051/ton) in morning trading session.
- On the back of softer futures market, some local traders are attempting to slash their offers between CNY100-120/ton ($14-17/ton) for PP Homo Raffia from Wednesday’s level. However, despite a downtrend in the futures market, the two leading Chinese polyolefins producers maintained a stable offer level as compared to the same period as both companies were saddled with low inventory level and low sales pressure. Considering the sudden drop in the futures market, sources in China voiced out to SSESSMENTS.COM that the possibility of local PP prices to move lower is high.
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