A Chinese trader informed SSESSMENTS.COM that most PE and PP market players are trying to regain confidence following the Coronavirus outbreak. Compared to the initial offer level announce on June 1, July shipment offers for HDPE Blow Moulding, HDPE Film and LDPE Film of Middle Eastern origin to China market increased between $20-30/ton. The trader opined that the absence of LLDPE Film C4 offers might be due to the limited allocation. In the local market, the offers for local LLDPE Film C4 cargoes from the trader’s end were trimmed by CNY50/ton ($7/ton) from Wednesday’s level following the decreases in the futures market. While for local HDPE Film and LDPE Film cargoes, the offers were kept stable compared to the same period. Similarly, the offers for PP Homo Raffia and PP Homo Fiber were also stable from Wednesday’s level.
From Monday to Wednesday, demand is quite satisfactory as the traders continue to receive orders on a daily basis. However, as of Thursday, the market turned quiet following the decreases in the futures market. The trader stated to SSESSMENTS.COM that China market is still facing difficulties as restaurants, hotels, travel industries, as well as some foreign trading sectors are still struggling to revive from the Coronavirus pandemic impact. At the moment, healthy demand is recorded from the medical-related sector and other essential products such as food packaging. As such, most players are very cautious in making decisions as the economic sector has not fully recovered from the pandemic impact.
