A Chinese trader told SSESSMENTS.COM that China PE and PP market is dragging down by futures prices slump and slow demand. This week, the trader received the latest import offers from a Thai PE producer. HDPE Film cargoes stand at $820/ton, while LLDPE Film C4 cargoes at $800/ton. Trader skipped purchasing the cargoes after previously buying import Thailand LLDPE Film C4 cargoes at $760/ton. All offers are on LC at sight, CIF China Main Port basis.
A trader informed that the current import LLDPE Film C4 price from Thailand is equal to CNY6,400-6,500/ton, which means profit margin is thin. The trader also tries to sell Middle East origin PE cargoes which will arrive at the port soon, but customers are taking a wait-and-see stance since the futures prices are dropping in the last two days. From Dalian Exchange Commodity today, LLDPE future prices for September 2020 settled at CNY6,230/ton ($777/ton). Market demand declined following slow consumption of plastic package goods after export orders slump due to the Coronavirus outbreak, SSESSMENTS.COM noted.
"In general, the outlook for the PE and PP market is not positive. Even though the current prices are on an upward trend, it would not sustain without a strong demand to support," the trader told SSESSMENTS.COM. Trader pointed out as an export-oriented country, China market will take some time to recover.
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