A trader based in China contacted by SSESSMENTS.COM cited that local PE prices have lost their momentum to shine brighter, while PP already tumbled following a trail of futures prices. As contacted on Monday, July 20, the trader reported that the company has yet to receive any fresh offers for PE cargoes. However, the trader still has some offers for local, localized as well as import PE cargoes and the prices remain firm from last week as supported by the rebound in futures prices.
The trader lamented that the company is unable to increase their offers for PE due to buyers’ resistance toward high prices. Besides, the inventory level of the two leading polyolefins producers in the country have begun to accumulate recently; if the digestion is not smooth on a daily basis, local PE prices most likely will drop later on. Meanwhile, pertaining to the delayed Iranian vessels that successfully able to support PE prices beforehand, now is no longer impervious as players already get used to it. Additionally, the presence of seasonal slowdown has restrained buyers from making fresh procurements. In short, the trader noted to SSESSMENTS.COM that PE prices have forfeited its momentum to move further higher.
As for PP, the trader is currently offering local PP Homo Raffia cargoes at CNY50-100/ton ($7-14/ton) lower from last week’s level following the softer futures market prices. Aside from softer futures prices, the drop in local PP prices was also caused by the slow domestic demand for PP resins. Although PP demand is weaker than PE, the overall demand for both resins remains sluggish, SSESSMENTS.COM was told. Moreover, approaching late July, supply for PP is expected to be sufficient since there are not many maintenance shutdowns at local producers' plants.
