- Four digits adjustments were applied on local offers on a daily comparison
- The actual demand for PP in April was weak
- PP Homo Raffia supply was lesser because some producers switched to produce other PP grades
China PP prices were on a roller coaster ride in April. At the beginning of the month, local and import PP prices were on downtrend and market players contacted by SSESSMENTS.COM were pessimistic that a rebound can be seen in both local and import PP prices. However, surprisingly, in the week commencing April 6, local offers started to increase. On a weekly comparison, local PP Homo Raffia offers in this particular week were adjusted up between CNY200-700/ton ($28-99/ton) while local PP Random Copolymer offers surged by CNY300/ton ($42/ton). Over the weekend (April 11-12), local prices kept moving higher as the market was active. By Monday, April 13, local PP Homo Raffia offers jumped between CNY1,300-1,800/ton ($184-254/ton) while PP Homo Injection by CNY1,300/ton ($184/ton) compared to levels recorded on April 10. A local trader made further adjustments on April 14, hence, the cumulative increases of offers from the trader for PP Homo Raffia and PP Homo Injection were CNY1,800-2,000/ton ($254-283/ton) and CNY2,300/ton ($325/ton), respectively. SSESSMENTS.COM was told that the remarkable increases in local PP prices were due to firmer futures prices on April 13, stronger crude oil prices, reduced supply as some producers switch production to PP Homo Fiber, and speculation of traders. Bullish buying sentiment was able to provide support for the uptrend in prices even though futures prices softened on April 14.
On April 15, SSESSMENTS.COM noted that spot PP Homo Raffia dropped between CNY1,000-1,500/ton ($141-212/ton) from levels a day earlier due to softer futures prices coupled with unsupportive demand from downstream customers. The downtrend continued to the week commencing April 20. On the first day of the week, local PP Homo Raffia offers were reported at CNY50-500/ton ($7-85/ton) lower than a week earlier. Then, after crude oil prices dropped to negative territory a day later, another reduction of CNY1,000/ton ($141/ton) was applied. The product was then available at below CNY7,000/ton ($989/ton) on cash, EXW China basis and including 13% VAT. In the last week of the month, local PP Homo Raffia and PP Homo Injection prices were adjusted up between CNY50-100/ton ($7-14/ton) compared to the previous week.
Similar to local offers, import PP offers were also on an uptrend in the week commencing April 6 and April 13. In the week commencing April 6, offers for PP Homo Raffia of Vietnam origin increased twice, and the total increase was $45/ton from a week earlier. Offers for the same product from India went up between $50-60/ton compared to the same period. In the week commencing April 13, the upward adjustments were mostly by three digits. SSESSMENTS.COM was informed that offers for PP Homo Raffia from a Saudi producer were adjusted up by $100/ton while offers for PP Homo Raffia of Vietnam origin increased between $150-160/ton on a weekly comparison. A week later, May shipment offers for PP Homo Raffia from South Korea surfaced at $70/ton lower than April. Offers for PP Homo Raffia of Middle East origin were stable on a weekly comparison. In the last week of the month, import PP prices to China were still on a downtrend. PP Homo Raffia and PP Homo Injection from Vietnam dropped by $120/ton compared to two weeks earlier.
In the first half of the month, buying sentiment improved because prices were on an uptrend. However, strong demand was only shown by mask manufacturers and traders that hedged. SSESSMENTS.COM was told that among all converters in China, only around 20% are mask manufactures. In the second half of the month, buying sentiment was bearish due to the drop in crude oil prices and the International Labor Day holiday ahead. Hence, the actual demand for most PP grades in April was categorized as weak. On the supply side, the availability of PP Homo Raffia was reported lesser because some producers switched to produce other PP grades, mostly to PP Homo Fiber.
Entering May, market players opined to SSESSMENTS.COM that demand will remain weak at least in the first half of May because most converters prefer to wait on the side line until the results of the government meeting in mid May are announced. After that, if the authorities agree to boost local industries, demand will start to improve. In terms of supply, PP Homo Raffia supply is expected to be no longer limited and the inventory of two major polyolefins producers is predicted to accumulate to 1 million tons level after the International Labor Day Holiday.
Click below to view related stories and content on PP:
NewsSSESSMENTS: Local PP Offers In China Continue To Rally, Breaking New Threshold
NewsSSESSMENTS: PP Futures Price Take A Breather, Spot Market Continues To Rally On Supportive Demand
NewsSSESSMENTS: Trader Remains At Ease Despite Import PP Offers To China Adjusted By Three Digits
NewsSSESSMENTS: China Market Out Of Control, Government Stepped In To Intervene
NewsSSESSMENTS: Chinese Producers Switch And Ramp Up Production For PP Fiber As Prices Shift In Multifold
NewsSSESSMENTS: Southeast Asian PP Producers Gain Confidence As China Market Perks Up
NewsSSESSMENTS: South Korean PP Producer Sold Out May Shipment Allocation To China
NewsSSESSMENTS: South Korean Producer Received Mixed Responses For May Shipment PP Offers To China Market
NewsSSESSMENTS: Notable Adjustments On Offers For Vietnam PP Cargoes To China Failed To Gain Buyers’ Interest Local Offers On Opposite Trend
WeeklySSESSMENTS: China PP Prices W/C April 6
WeeklySSESSMENTS: China PP Prices W/C April 13
WeeklySSESSMENTS: China PP Prices W/C April 20
WeeklySSESSMENTS: China PP Prices W/C April 27
Range of local PP offers between April 1 to April 3 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 Block Copolymer | Offer Given | 6,100-6,200 | 763-775 |
| China | PP Homo Injection | Price List | 6,700-7,200 | 838-901 |
| China | PP Homo Raffia | Offer Given | 6,100-6,500 | 763-813 |
| China | PP Homo Raffia | Price List | 6,500-7,050 | 813-882 |
| China | PP Random Copolymer Injection | Price List | 7,650-8,200 | 957-1,026 |
Range of import PP offers between April 1 to April 3 on LC at sight, CIF China Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Far East Asia | PP Block Copolymer | Sold | 780 |
| Southeast Asia | PP Block Copolymer | Purchased | 760-780 |
| Far East Asia | PP Homo Injection | Offer Given | 800 |
| Far East Asia | PP Homo Injection | Sold | 860 |
| Southeast Asia | PP Homo Injection | Sold | 800 |
| Indian Subcontinent | PP Homo Raffia | Purchased | 685 |
| Far East Asia | PP Homo Raffia | Offer Given | 800 |
| Far East Asia | PP Homo Raffia | Offer Received | 680-690 |
| Far East Asia | PP Homo Raffia | Purchased | 680 |
| Far East Asia | PP Homo Raffia | Sold | 750 |
| Middle East | PP Homo Raffia | Offer Given | 710-720 |
| Southeast Asia | PP Homo Raffia | Sold | 740 |
Range of local PP offers between April 6 to April 10 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 | 7,600-7,800 | 951-976 |
| China | PP Homo Injection | Offer Given | 6,900-7,300 | 863-913 |
| China | PP Homo Injection | Price List | 7,400-8,050 | 926-1,007 |
| China | PP Homo Raffia | Offer Given | 6,900-7,300 | 863-913 |
| China | PP Homo Raffia | Price List | 7,600-8,000 | 951-1,001 |
| China | PP Homo Raffia (CTO) | Sold | 6,830-6,840 | 854-856 |
| China | PP Random Copolymer Injection | Price List | 8,150-8,700 | 1,019-1,088 |
Range of import PP offers between April 6 to April 10 on LC at sight, CFR/CIF China Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Payment Term | Delivery Term |
|---|
| Far East Asia | PP Block Copolymer | Offer Received | 800 | LC at sight | CIF |
| Far East Asia | PP Block Copolymer | Bid Given | 810 | LC at sight | CIF |
| Far East Asia | PP Block Copolymer | Sold | 800 | LC at sight | CIF |
| Far East Asia | PP Block Copolymer | Sold | 800 | LC 30 Days | CIF |
| Southeast Asia | PP Block Copolymer | Offer Received | 850 | LC at sight | CIF |
| Southeast Asia | PP Block Copolymer | Sold | 850 | LC at sight | CIF |
| Far East Asia | PP Homo Film | Sold | 730 | LC at sight | CFR |
| Far East Asia | PP Homo Injection | Bid Given | 730 | LC at sight | CIF |
| Far East Asia | PP Homo Injection | Sold | 730 | LC at sight | CFR |
| Middle East | PP Homo Injection | Offer Given | 770 | LC at sight | CIF |
| Southeast Asia | PP Homo Injection | Offer Received | 820 | LC at sight | CFR |
| Far East Asia | PP Homo Raffia | Offer Received | 760 | LC at sight | CIF |
| Far East Asia | PP Homo Raffia | Bid Given | 730 | LC at sight | CIF |
| Far East Asia | PP Homo Raffia | Sold | 760 | LC at sight | CIF |
| Indian Subcontinent | PP Homo Raffia | Sold | 725 | LC 30 days | CIF |
| Middle East | PP Homo Raffia | Offer Given | 710-760 | LC at sight | CIF |
| Middle East | PP Homo Raffia | Sold | 740 | LC 60 days | CIF |
| Southeast Asia | PP Homo Raffia | Offer Received | 800-860 | LC at sight | CIF |
| Southeast Asia | PP Homo Raffia | Offer Received | 810-825 | LC at sight | CFR |
| Southeast Asia | PP Homo Raffia | Buy Idea | 800 | LC at sight | CFR |
| Southeast Asia | PP Homo Raffia | Sold | 800 | LC at sight | CFR |
| Far East Asia | PP Random Copolymer Blow | Offer Received | 900 | LC at sight | CIF |
| Far East Asia | PP Random Copolymer Blow | Sold | 900 | LC at sight | CIF |
Range of local PP offers between April 13 to April 17 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 | 9,000 | 1,126 |
| China | PP Block Copolymer | Offer Received | 9,360 | 1,171 |
| China | PP Homo Injection | Offer Given | 8,100-8,500 | 1,013-1,063 |
| China | PP Homo Injection | Price List | 9,700-10,350 | 1,213-1,295 |
| China | PP Homo Raffia | Offer Given | 9,000-9,500 | 1,126-1,188 |
| China | PP Homo Raffia | Price List | 9,300-9,800 | 1,163-1,226 |
| China | PP Homo Raffia (CTO) | Offer Given | 8,700-8,800 | 1,088-1,101 |
| China | PP Homo Raffia (CTO) | Sold | 8,700-8,750 | 1,088-1,094 |
| China | PP Random Copolymer Injection | Price List | 9,200-9,500 | 1,151-1,188 |
Range of import PP offers between April 13 to April 17 on CIF China Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Payment Term |
|---|
| Southeast Asia | PP Block Copolymer | Offer Received | 1,050 | LC at sight |
| Indian Subcontinent | PP Homo Injection | Offer Received | 880 | LC at sight |
| Southeast Asia | PP Homo Injection | Offer Received | 880 | LC at sight |
| Southeast Asia | PP Homo Injection | Sold | 880 | LC at sight |
| Indian Subcontinent | PP Homo Raffia | Sold | 830 | LC 90 days |
| Indian Subcontinent | PP Homo Raffia | Sold | 830 | LC at sight |
| Middle East | PP Homo Raffia | Offer Received | 830-900 | LC at sight |
| Middle East | PP Homo Raffia | Purchased | 810 | LC at sight |
| Southeast Asia | PP Homo Raffia | Offer Received | 980 | LC at sight |
| Southeast Asia | PP Homo Raffia | Purchased | 870 | LC at sight |
Range of local/localized PP offers between April 20 to April 24 on cash, EXW China basis (including 13% VAT in CNY term and excluding VAT in USD term)
| Origin | Product | Transaction Type | Offers (USD/ton) | Equivalent in USD/ton |
|---|
| China | PP Block Copolymer | Offer Received | 8,600 | 1,076 |
| China | PP Homo Film | Price List | 7,366 | 921 |
| China | PP Homo Injection | Price List | 7,900-8,450 | 988-1,057 |
| China | PP Homo Raffia | Offer Given | 6,950-7,200 | 869-901 |
| China | PP Homo Raffia | Price List | 7,200-7,600 | 901-951 |
| Vietnam | PP Homo Raffia | Purchased | 6,800-6,900 | 851-863 |
| China | PP Homo Raffia (CTO) | Sold | 7,100 | 888 |
| China | PP Random Copolymer Injection | Price List | 8,300-8,700 | 1,038-1,088 |
Range of import PP offers between April 20 to April 24, CIF China Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Payment Term |
|---|
| Far East Asia | PP Block Copolymer | Offer Given | 890 | LC at sight |
| Middle East | PP Block Copolymer | Offer Received | 800-830 | LC at sight |
| Southeast Asia | PP Homo Film | Offer Given | 875 | LC at sight |
| Southeast Asia | PP Homo Film | Sold | 835 | LC at sight |
| Far East Asia | PP Homo Injection | Offer Given | 860 | LC at sight |
| Indian Subcontinent | PP Homo Injection | Offer Received | 770 | LC at sight |
| North America | PP Homo Injection | Offer Received | 810 | LC 90 Days |
| Far East Asia | PP Homo Raffia | Offer Given | 850 | LC at sight |
| Indian Subcontinent | PP Homo Raffia | Offer Received | 770 | LC at sight |
| Middle East | PP Homo Raffia | Offer Given | 750-800 | LC at sight |
| Middle East | PP Homo Raffia | Offer Received | 770-810 | LC at sight |
| North America | PP Homo Raffia | Offer Received | 810 | LC 90 Days |
| Southeast Asia | PP Homo Raffia | Offer Received | 885 | LC at sight |
| Southeast Asia | PP Random Copolymer Injection | Sold | 960 | LC at sight |
Range of local PP offers between April 27 to April 30 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 | 7,800-8,200 | 976-1,026 |
| China | PP Homo Injection | Offer Given | 7,400-7,800 | 926-976 |
| China | PP Homo Injection | Price List | 7,500-7,800 | 938-976 |
| China | PP Homo Raffia | Offer Given | 7,300-7,700 | 913-963 |
| China | PP Homo Raffia | Price List | 7,200-7,400 | 901-926 |
| China | PP Impact Copolymer | Price List | 7,400-7,700 | 926-963 |
| China | PP Random Copolymer Injection | Price List | 8,100-8,300 | 1,013-1,038 |
Range of import PP offers between April 27 to April 30 on LC at sight, CIF China Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Payment Term |
|---|
| Far East Asia | PP Block Copolymer | Offer Given | 850* | LC at sight |
| Far East Asia | PP Block Copolymer | Sold | 840*-850* | LC at sight |
| Far East Asia | PP Homo Injection | Purchased | 810 | LC at sight |
| Far East Asia | PP Homo Injection | Sold | 810* | LC at sight |
| Middle East | PP Homo Injection | Offer Received | 760-780 | LC at sight |
| Southeast Asia | PP Homo Injection | Offer Received | 860 | LC at sight |
| Far East Asia | PP Homo Raffia | Sold | 810* | LC at sight |
| North America | PP Homo Raffia | Bid Given | 800 | LC 90 days |
| Middle East | PP Homo Raffia | Offer Given | 770-800 | LC at sight |
| Southeast Asia | PP Homo Raffia | Offer Given | 830-840 | LC at sight |
| Southeast Asia | PP Homo Raffia | Offer Received | 860 | LC at sight |
| Southeast Asia | PP Homo Raffia | Sold | 790 | LC at sight |
| Far East Asia | PP Random Copolymer Blow | Sold | 940* | LC at sight |
Description: *Offers for May shipment
Tags: Asia Pacific,China,English,Monthly,NEA,PP
Published on May 11, 2020 1:55 PM (GMT+8)
Last Updated on May 30, 2020 10:10 PM (GMT+8)
