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NewsSSESSMENTS: Futures Price Movements Affect Buying Sentiment In China Domestic Market, Supply Factor Determines Pricing For Import Cargoes


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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NewsSSESSMENTS: Thai PE Producer Encounters Cold Response Proceed With Price Amendment To China

NewsSSESSMENTS: Local, Localized PE Prices Gain Support From Stronger Futures Market, Procurement Activities In China Improved

NewsSSESSMENTS: Thai PE Producer Adjusted Prices To China Twice Within A Day

Local/localized PE offers on cash, EXW China basis (including 13% VAT in CNY terms, all equivalent in USD excluding VAT)

OriginProductTransaction TypeOffers (CNY/ton)Equivalent in USD/ton
ChinaHDPE Blow MouldingPrice List6,800850
ChinaHDPE FilmPrice List7,200899
ChinaHDPE FilmOffer Given7,100-7,300887-912
IranHDPE FilmOffer Given6,800-7,100850-887
MalaysiaHDPE FilmOffer Given6,500812
RussiaHDPE FilmOffer Given6,450806
ChinaHDPE Pipe (PE 100)Price List8,1001,012
ChinaHDPE YarnPrice List6,900862
ChinaLDPE FilmPrice List7,000-7,450875-931
ChinaLDPE FilmOffer Given7,200-7,300899-912
MalaysiaLDPE FilmOffer Given7,200899
SaudiLDPE FilmOffer Given7,400924
ChinaLLDPE Film C4Price List6,400-6,650780-831
ChinaLLDPE Film C4Offer Given6,300-6,450787-806
IranLLDPE Film C4Offer Given6,400780

Import PE offers, CIF China Main Port basis

OriginProductTransaction TypeOffers (USD/ton)Payment Term
North AmericaHDPE Blow MouldingSold700LC 90 days
Far East AsiaHDPE FilmOffer Given750LC 90 days
Far East AsiaHDPE FilmSold740LC 90 days
Middle EastHDPE FilmOffer Received800LC at sight
Middle EastHDPE FilmBid Given710LC at sight
Middle EastHDPE FilmOffer Given730-750LC at sight
North AmericaHDPE FilmSold705-710LC 90 days
Southeast AsiaHDPE FilmOffer Given800-810LC at sight
Southeast AsiaHDPE FilmOffer Received820-830LC at sight
Southeast AsiaHDPE FilmBid Given700LC at sight
Southeast AsiaHDPE FilmSold800LC at sight
Southeast AsiaHDPE YarnOffer Given780-790LC at sight
Middle EastLDPE FilmOffer Given770-800LC at sight
Southeast AsiaLDPE FilmOffer Given810-830LC at sight
Middle EastLLDPE Film C4Offer Given690-710LC at sight
Southeast AsiaLLDPE Film C4Offer Given770LC at sight
Southeast AsiaLLDPE Film C4Bid Given700LC at sight
Southeast AsiaLLDPE Film C4Offer Received820-830LC at sight
Southeast AsiamLLDPE C6Offer Given890LC at sight

September 2020 LLDPE Futures Prices On Dalian Commodity Exchange

DateSettlement (CNY/ton)

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)