A Chinese trader opined to SSESSMENTS.COM that the Coronavirus pandemic looms over PE market outlook. In comparison to a week earlier, the offers for HDPE Blow Moulding and HDPE Injection trimmed between $40-50/ton and between $25-35/ton respectively. While for HDPE Film and LLDPE Film C4, the offers also captured lower by $40/ton and between $50-60/ton, respectively compared to the same period. Meanwhile, the offers for LDPE Film were kept stable on a weekly comparison supported by the limited supply in the market. So far, buyers remain hesitant in making purchases as PE prices continue to move lower week-by-week.
Market sentiment is bearish as the futures prices continue to decrease, SSESSMENTS.COM was told. Moreover, the demand for finished products is sluggish, especially from the export market. “We are worrying that the order from US and European customers will be affected by the Coronavirus outbreak,” the trader added. Although the US stock market surged this week, there was no impact on the petrochemical markets as players are more concerned about the impact of Coronavirus pandemic on finished product demand.
Looking ahead, the trader expressed to SSESSMENTS.COM that the possibility for upward momentum in the polymers market is impossible as long as Coronavirus pandemic still looms over. From the supply side, the export volume from the Iranian producer is predicted to be reduced in days to come due to the logistical constraints amid Coronavirus outbreak.
