A China-based trader unveiled to SSESSMENTS.COM pertaining to the reasons behind the local PE price adjustments and foretells PP demand trend in the near time. Compared to the last trading day, local PE offers from the trader’s end remained stable. However, as compared to the beginning of last week, PE prices were showing a downtrend, yet, the trader is unwilling to disclose the amount of the downward price correction. The trader disclosed several reasons behind the downtrend on PE prices in the domestic market. First, Iranian vessels are expected to dock in the near term although there is no official announcement yet. Second, the arrival of PE cargoes of US origin in the past few weeks have added more volume to PE supply in the market. Moreover, China PE market is expected to be more competitive as the shutdown at several local producers’ PE plants is almost finished. The deals concluded for local PE cargoes have been limited since last week, as buyers prefer to wait for more fresh offers before making any procurements.
Likewise, the trader also maintained the offers for local PP Homo Raffia stable from last Friday’s level. While for BOPP, the latest offers from the trader’s end stand at CNY7,800-7,850/ton ($1,111-1,118/ton) on cash, EXW China basis and including 13% VAT. In the import market, not many fresh offers are available in the market. As from the traders’ end, import Indian and Middle Eastern PP Homo Raffia cargoes generally declined between $10-15/ton on the week-on-week comparison. The trader predicted that buyers will adopt a wait-and-see stance and trading activities will remain limited in the near term due to the traditional low season on PE and PP demand in the China market. In the export market, the trader opined that the addition of anti-dumping duty in Vietnam market from 9.05% to 23.71% on import of BOPP from several origins, including China, will surely give a significant impact on the China market, SSESSMENTS.COM was told.
