As SSESSMENTS.COM noted, futures price movements have affected buying sentiment in China domestic market while supply factor determines pricing for import cargoes to the country. On April 27, local and localized PE prices in the China market increased between CNY50-100/ton ($7-14/ton) as compared to last Friday’s level following the increases in the futures market. Buyers were showing a better buying sentiment during this time as inventory levels of the two leading China polyolefins producers decreased by 300,000 tons from Sunday’s level, recorded at 800,000 tons as of Monday, April 27.
The lower inventory level of the two leading Chinese polyolefins producers also triggered foreign suppliers to adjust up offers to China. A South Korean producer increased offers for HDPE Film cargoes by $30/ton as compared to last week’s level, available at $750/ton on LC 90 days, CIF China main port basis. However, the deals were achieved at $10/ton lower than the initial offer level. For Thai PE cargoes, the stronger futures market and limited supply from the producer’s end have supported the upward price adjustment. Offers for HDPE Film surged by $20/ton as compared to last week, while LLDPE Film C4 offers moved up by $30/ton as compared to last week’s deals, SSESSMENTS.COM was told.
However, as futures prices started to decrease by Tuesday morning (April 28), buying sentiment in China PE market dampens. September 2020 LLDPE prices in the Dalian Commodity Exchange decreased CNY40/ton ($5/ton) day on day, settling at CNY6,160/ton ($870/ton) by Tuesday settlement. At the moment, buyers become more cautious in procuring materials, most tend to purchase on a hand-to-mouth basis, SSESSMENTS.COM was told.
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Local/localized PE offers on cash, EXW China basis (including 13% VAT in CNY terms, all equivalent in USD excluding VAT)
| Origin | Product | Transaction Type | Offers (CNY/ton) | Equivalent in USD/ton |
|---|
| China | HDPE Blow Moulding | Price List | 6,800 | 850 |
| China | HDPE Film | Price List | 7,200 | 899 |
| China | HDPE Film | Offer Given | 7,100-7,300 | 887-912 |
| Iran | HDPE Film | Offer Given | 6,800-7,100 | 850-887 |
| Malaysia | HDPE Film | Offer Given | 6,500 | 812 |
| Russia | HDPE Film | Offer Given | 6,450 | 806 |
| China | HDPE Pipe (PE 100) | Price List | 8,100 | 1,012 |
| China | HDPE Yarn | Price List | 6,900 | 862 |
| China | LDPE Film | Price List | 7,000-7,450 | 875-931 |
| China | LDPE Film | Offer Given | 7,200-7,300 | 899-912 |
| Malaysia | LDPE Film | Offer Given | 7,200 | 899 |
| Saudi | LDPE Film | Offer Given | 7,400 | 924 |
| China | LLDPE Film C4 | Price List | 6,400-6,650 | 780-831 |
| China | LLDPE Film C4 | Offer Given | 6,300-6,450 | 787-806 |
| Iran | LLDPE Film C4 | Offer Given | 6,400 | 780 |
Import PE offers, CIF China Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Payment Term |
|---|
| North America | HDPE Blow Moulding | Sold | 700 | LC 90 days |
| Far East Asia | HDPE Film | Offer Given | 750 | LC 90 days |
| Far East Asia | HDPE Film | Sold | 740 | LC 90 days |
| Middle East | HDPE Film | Offer Received | 800 | LC at sight |
| Middle East | HDPE Film | Bid Given | 710 | LC at sight |
| Middle East | HDPE Film | Offer Given | 730-750 | LC at sight |
| North America | HDPE Film | Sold | 705-710 | LC 90 days |
| Southeast Asia | HDPE Film | Offer Given | 800-810 | LC at sight |
| Southeast Asia | HDPE Film | Offer Received | 820-830 | LC at sight |
| Southeast Asia | HDPE Film | Bid Given | 700 | LC at sight |
| Southeast Asia | HDPE Film | Sold | 800 | LC at sight |
| Southeast Asia | HDPE Yarn | Offer Given | 780-790 | LC at sight |
| Middle East | LDPE Film | Offer Given | 770-800 | LC at sight |
| Southeast Asia | LDPE Film | Offer Given | 810-830 | LC at sight |
| Middle East | LLDPE Film C4 | Offer Given | 690-710 | LC at sight |
| Southeast Asia | LLDPE Film C4 | Offer Given | 770 | LC at sight |
| Southeast Asia | LLDPE Film C4 | Bid Given | 700 | LC at sight |
| Southeast Asia | LLDPE Film C4 | Offer Received | 820-830 | LC at sight |
| Southeast Asia | mLLDPE C6 | Offer Given | 890 | LC at sight |
September 2020 LLDPE Futures Prices On Dalian Commodity Exchange
| Date | Settlement (CNY/ton) |
|---|
| 1-Apr-2020 | 5,515 |
| 2-Apr-2020 | 5,695 |
| 3-Apr-2020 | 5,830 |
| 7-Apr-2020 | 6,060 |
| 8-Apr-2020 | 6,005 |
| 9-Apr-2020 | 6,000 |
| 10-Apr-2020 | 6,130 |
| 13-Apr-2020 | 6,395 |
| 14-Apr-2020 | 6,215 |
| 15-Apr-2020 | 6,185 |
| 16-Apr-2020 | 6,190 |
| 17-Apr-2020 | 6,240 |
| 20-Apr-2020 | 6,080 |
| 21-Apr-2020 | 5,870 |
| 22-Apr-2020 | 5,715 |
| 23-Apr-2020 | 5,960 |
| 24-Apr-2020 | 6,090 |
| 27-Apr-2020 | 6,200 |
| 28-Apr-2020 | 6,160 |
Tags: Asia Pacific,China,English,NEA,News,PE
Published on April 28, 2020 6:27 PM (GMT+8)
Last Updated on April 29, 2020 6:54 PM (GMT+8)
