- Local PP Homo Raffia offers reached CNY5,000/ton-level ($704/ton) at the end of the month
- PP market was slow in March due to several factors
- Import and local PP offers are expected to decrease further
Local PP prices in China were mostly on a downtrend during March, except for the first week of the month. At the beginning of the first week, offers for local PP Homo Raffia captured increased between CNY150-300/ton ($21-42/ton) compared to offers in the last week of February. In the following weeks, PP prices continued to decrease. Traders even made downward adjustments on a daily basis. By comparing price lists issued in the first week and the last week of the month by a local trader, SSESSMENTS.COM noted that the cumulative decreases on PP Homo Raffia were CNY450-700/ton ($63-99/ton). However, the decreases were much more significant when SSESSMENTS.COM compared the lowest PP Homo Raffia offers in the first week and the last week of the month. The gap was CNY1,250/ton ($176/ton) as in the last week, offers for PP Homo Raffia in the domestic China market were available at CNY5,750/ton ($810/ton) on cash, EXW China basis and including 13% VAT. For PP Random Copolymer Injection, the cumulative decreases were CNY850/ton ($120/ton). Factors causing the downtrend were the drops in crude oil and futures prices. In March, May 2020 PP future prices in Dalian Commodity Exchange have dropped by CNY957/ton ($135/ton). Domestic demand for PP that had not been fully recovered from the Coronavirus outbreak also further dragged down PP prices.
Unlike local prices, the downturn in import PP offers was clearly seen in the second half of the month while in the first half, offers from the Middle East and India were stable in a weekly comparison. Meanwhile, on a monthly comparison, offers for PP Homo Raffia from South Korea surfaced with reductions between $50-70/ton in the first week. In the second week, a South Korean PP producer withdrew offers due to the explosion at the producer’s crackers. In the week commencing March 16, market players reported to SSESSMENTS.COM that offers for cargoes of Middle East and India origins were scarce. In the week commencing March 23, offers and deals at $700/ton-level started to surface. An Indian petrochemical producer slashed offers by $40/ton to $780/ton on LC at sight, CIF China main port basis. Deals for PP Homo Raffia from the leading Indonesian polyolefins producer were concluded at $760/ton with the same payment and delivery term, $40/ton lower than the initial offer level. Offers for PP Homo Raffia from Vietnam also decreased by $40/ton in this particular week. On March 31, deals for PP Homo Raffia cargoes from India were already at $700/ton on LC at sight, CIF China main port basis.
Although the Coronavirus outbreak in China has been curbed, the PP market was still slow in March as buying sentiment affected by the Coronavirus outbreak in other countries that led to slow end-product sales. Hence, some downstream manufacturers kept operating rates at a low level. Besides, after crude oil prices dropped by more than 30% in a day on March 9, most buyers halted procurement activities or only purchased on a need basis and monitored the market as prices were expected to move lower. On the supply side, SSESSMENTS.COM was informed that the availability of local materials was abundant.
Entering April, market players predicted that PP Homo Raffia prices will continue to decrease as signs of improvements in demand could not be seen yet. A high inventory level in the local market also puts more pressure on prices, hence, a rebound in local offers will be difficult to occur. Meanwhile, import offers to China will head to $600/ton as competition between foreign suppliers becomes fiercer, SSESSMENTS.COM was told.
Range of local PP offers between March 2 to March 6 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 Homo Injection | Offer Given | 7,100-7,400 | 885-923 |
| China | PP Homo Injection | Price List | 7,150-7,500 | 892-935 |
| China | PP Homo Raffia | Offer Given | 7,000-7,300 | 873-910 |
| China | PP Homo Raffia | Sold | 7,050 | 879 |
| China | PP Homo Raffia | Price List | 7,050-7,500 | 879-935 |
| China | PP Block Copolymer | Offer Given | 7,700-7,800 | 960-973 |
| China | PP Random Copolymer Injection | Price List | 8,700-9,100 | 1,085-1,135 |
Range of import PP offers between March 2 to March 6 on LC at sight, CIF China Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Far East Asia | PP Block Copolymer | Sold | 900-930 |
| Far East Asia | PP Block Copolymer | Offer Given | 980 |
| Southeast Asia | PP Block Copolymer | Offer Received | 1,050-1,075 |
| Southeast Asia | PP Block Copolymer | Bid Given | 1,000 |
| Far East Asia | PP Homo Injection | Offer Received | 930-950 |
| Far East Asia | PP Homo Injection | Offer Given | 950-960 |
| Indian Subcontinent | PP Homo Injection | Offer Given | 870-880 |
| Indian Subcontinent | PP Homo Injection | Sold | 870-880 |
| Indian Subcontinent | PP Homo Injection | Offer Received | 870 |
| Middle East | PP Homo Injection | Offer Received | 860-870 |
| Middle East | PP Homo Injection | Sold | 860-870 |
| Far East Asia | PP Homo Raffia | Offer Given | 950-960 |
| Far East Asia | PP Homo Raffia | Offer Received | 930-950 |
| Far East Asia | PP Homo Raffia | Sold | 870-900 |
| Indian Subcontinent | PP Homo Raffia | Offer Given | 870-880 |
| Indian Subcontinent | PP Homo Raffia | Offer Received | 870 |
| Middle East | PP Homo Raffia | Offer Received | 840 |
| Middle East | PP Homo Raffia | Offer Given | 840-880 |
| Middle East | PP Homo Raffia | Sold | 840 |
| Southeast Asia | PP Homo Raffia | Offer Received | 995 |
| Far East Asia | PP Random Copolymer Injection | Offer Given | 1,050 |
| Southeast Asia | PP Random Copolymer Injection | Offer Received | 1,125 |
Range of local PP offers between March 9 to March 13 on cash, EXW China basis (including 13% VAT in CNY term, excluding VAT in CNY term)
| Origin | Product | Transaction Type | Offers (CNY/ton) | Equivalent in USD/ton |
|---|
| China | PP Homo Injection | Price List | 7,250-7,400 | 904-923 |
| China | PP Homo Injection | Offer Given | 6,900-7,300 | 860-910 |
| China | PP Homo Raffia | Offer Given | 6,700-7,200 | 836-898 |
| China | PP Homo Raffia | Price List | 7,150-7,550 | 892-942 |
| China | PP Homo Raffia | Sold | 6,900 | 860 |
| China | PP Homo Raffia (CTO) | Offer Given | 6,850-6,900 | 854-860 |
| China | PP Random Copolymer Injection | Price List | 8,650-9,100 | 1,079-1,135 |
Range of import PP offers between March 9 to March 13 on LC at sight, CIF China Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Middle East | PP Block Copolymer | Offer Received | 1,030 |
| Middle East | PP Homo Injection | Offer Given | 870-880 |
| Indian Subcontinent | PP Homo Raffia | Offer Given | 870-880 |
| Indian Subcontinent | PP Homo Raffia | Buy Idea | 840-850 |
| Middle East | PP Homo Raffia | Offer Given | 850-880 |
| Middle East | PP Homo Raffia | Offer Received | 840 |
| Southeast Asia | PP Homo Raffia | Offer Received | 930 |
| Southeast Asia | PP Homo Raffia | Offer Given | 890 |
| Middle East | PP Random Copolymer Injection | Offer Received | 1,060 |
Range of local PP offers between March 16 to March 20 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 | 8,000-8,200 | 998-1,023 |
| China | PP Homo Injection | Price List | 7,050-7,200 | 879-898 |
| China | PP Homo Injection | Offer Given | 6,800-7,200 | 848-898 |
| China | PP Homo Raffia | Offer Given | 6,550-7,000 | 817-873 |
| China | PP Homo Raffia | Price List | 6,600-7,100 | 823-885 |
| China | PP Random Copolymer Injection | Price List | 8,150-8,600 | 1,016-1,072 |
Range of import PP offers between March 16 to March 20 on LC at sight, CIF China Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Far East Asia | PP Block Copolymer | Offer Given | 950 |
| Southeast Asia | PP Block Copolymer | Offer Received | 890 |
| Far East Asia | PP Homo Injection | Offer Given | 900 |
| Far East Asia | PP Homo Raffia | Offer Given | 900 |
| Middle East | PP Homo Raffia | Offer Given | 840-850 |
| Southeast Asia | PP Homo Raffia | Offer Given | 880 |
Range of local PP offers between March 23 to March 27 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 Homo Injection | Offer Given | 6,600-6,800 | 823-848 |
| China | PP Homo Injection | Price List | 6,700-7,200 | 836-898 |
| China | PP Homo Raffia | Offer Given | 6,300-6,800 | 786-848 |
| China | PP Homo Raffia | Price List | 6,500-7,000 | 811-873 |
| China | PP Homo Raffia (CTO) | Offer Given | 6,600 | 823 |
| China | PP Random Copolymer Injection | Price List | 7,850-8,400 | 979-1,048 |
Range of import PP offers between March 23 to March 27 on LC at sight, CIF/CFR China Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Term |
|---|
| Far East Asia | PP Block Copolymer | Offer Given | 880-950 | CIF |
| Middle East | PP Block Copolymer | Offer Received | 820 | CIF |
| Southeast Asia | PP Block Copolymer | Offer Given | 990 | CIF |
| Southeast Asia | PP Block Copolymer | Offer Received | 1,030 | CIF |
| Far East Asia | PP Homo Injection | Offer Given | 860 | CIF |
| Southeast Asia | PP Homo Injection | Offer Received | 840 | CIF |
| Far East Asia | PP Homo Raffia | Offer Given | 860-920 | CIF |
| Indian Subcontinent | PP Homo Raffia | Offer Received | 780-830 | CIF |
| Indian Subcontinent | PP Homo Raffia | Offer Given | 780 | CIF |
| Middle East | PP Homo Raffia | Offer Given | 840-880 | CIF |
| Middle East | PP Homo Raffia | Offer Received | 800-820 | CIF |
| Southeast Asia | PP Homo Raffia | Offer Given | 800 | CIF |
| Southeast Asia | PP Homo Raffia | Offer Received | 840 | CIF |
| Southeast Asia | PP Homo Raffia | Bid Received | 760 | CIF |
| Southeast Asia | PP Homo Raffia | Purchased | 800 | CFR |
| Southeast Asia | PP Homo Raffia | Purchased | 760-800 | CIF |
| Far East Asia | PP Random Copolymer Injection | Offer Given | 1,010 | CIF |
| Middle East | PP Random Copolymer Injection | Offer Received | 880 | CIF |
| Southeast Asia | PP Random Copolymer Injection | Offer Given | 1,060 | CIF |
Range of local PP offers between March 30 to March 31 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 Homo Film | Offer Given | 6,200-6,300 | 773-786 |
| China | PP Homo Injection | Offer Given | 5,800-5,850 | 723-730 |
| China | PP Homo Injection | Price List | 6,700-7,200 | 836-898 |
| China | PP Homo Raffia | Offer Given | 5,750-6,200 | 717-773 |
| China | PP Homo Raffia (CTO) | Offer Given | 5,900-6,100 | 736-761 |
| China | PP Homo Raffia | Price List | 6,500-6,800 | 811-848 |
| China | PP Random Copolymer Injection | Price List | 7,850-8,400 | 979-1,048 |
Range of import PP offers between March 30 to March 31 on LC at sight, CIF/CFR China Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Far East Asia | PP Homo Injection | Offer Received | 800 |
| Middle East | PP Homo Injection | Offer Given | 710-740 |
| Indian Subcontinent | PP Homo Raffia | Sold | 700 |
| Middle East | PP Homo Raffia | Offer Given | 710-740 |
Tags: Asia Pacific,China,English,Monthly,NEA,PP
Published on April 3, 2020 2:32 PM (GMT+8)
Last Updated on April 6, 2020 1:40 PM (GMT+8)
