Chinese market participants informed SSESSMENTS.COM that China PP market gains momentum on the back of improving sentiment. After the Lunar New Year holiday, China PP market was in a downtrend as the Coronavirus outbreak has curtailed the trading activities. Buying sentiment dampened as workers were not able to resume work amid travel restrictions implemented by the Chinese government including mandatory quarantine, traffic control and prohibition to travel outside their counties or provinces to combat the Coronavirus outbreak.
After consecutive decrease ever since China market returned from the extended Lunar New Year holiday, a Chinese trader reported to SSESSMENTS.COM that the situation starts to change in direction, with offers for PP Homo Raffia and PP Homo Injection were adjusted up by CNY100/ton ($14/ton) as compared to a day earlier. The trader made an upward price adjustment on the back of better demand as buyers have started to replenish their inventory. In addition to the improving sentiment, inventory level at the two leading Chinese polyolefins producers recorded lower on February 20. The latest inventory level stands at 1.3 million tons, a decline of 100,000 tons from a day earlier.
Likewise, the same movement also captured in the export market. Offers for PP Homo Raffia at $870/ton on LC at sight, FOB China basis that was available on Tuesday, February 18 is no longer offered at the same level. SSESSMENTS.COM was notified that since Wednesday, February 19, export PP Homo Raffia offers have increased by $10/ton and the lowest offers for Chinese PP Homo Raffia cargoes is at $880/ton on LC at sight, FOB China basis.
