As contacted by SSESSMENTS.COM, a Chinese trader underlined contrast movements of local PE and PP prices amid the upheaval factors. On Thursday, July 9, the trader notified that local offers for PE across different grades were adjusted in contrast with PP. As for PE, the trader’s latest offers for local HDPE Film and LDPE Film were hiked between CNY100-300/ton ($14-43/ton) on a daily comparison. While on a weekly comparison, offers for HDPE Film, LDPE Film, and LLDPE Film C4 from the trader’s end had increased around CNY300-800/ton ($42-114/ton). The trader gained momentum to mark up local PE prices amid the delayed shipment of Iranian cargoes coupled with the low inventory of the two leading Chinese polyolefins producers. On the other side, the trader disregarded the fact that spot offers were moved lower between CNY50-100/ton ($7-14/ton) from a day earlier on the back of softer futures market prices. For import cargoes, the trader has yet to receive fresh offers and is only quoting other traders’ prices. Yet, the current import offers are considered too high, the trader further added.
Unlike PE, SSESSMENTS.COM was told that offers for local PP cargoes have emerged with a decrement as of Thursday, July 9. Since the beginning of the week, local PP offers were able to stand at a high level despite the limited stimulus that could lift the market sentiment. On Monday and Tuesday, local PP offers were indeed on an uptrend in-line with the rebound in futures prices. At that time, rumour has it that some foreign suppliers, such as the leading Indian petrochemical producer attempted to offer PP Homo Raffia cargoes to the China market at $910/ton on LC at sight, CIF China Main Port basis. But approaching Wednesday, market sentiment has started to weaken following the softer futures prices.
As of Thursday morning, July 9, the trader was forced to adjust down local offers for PP Homo Raffia by CNY50-100/ton ($7-14/ton) on a daily comparison, citing that market sentiment has deteriorated further to date. Whereas in the import market, offers for PP Homo Raffia of Saudi origin went up by $20/ton from last week’s level. The Saudi offers that stood at $950/ton on LC at sight, CIF China Main Port basis was deemed too high by the trader. In the days to come, the trader is unsure about the outlook for PP price trend, as commented to SSESSMENTS.COM. At some point, the trader believes that feedstock prices are still able to support PP prices. At the same time, the trader is worried about the market sentiment that is likely to weaken following the drop in futures prices.
