A Xiamen-based trader stated to SSESSMENTS.COM that the uptrend in crude oil and futures prices are unable to boost buying sentiment in the domestic market. As compared to last week, buying sentiment in the local market is better as supported by the low inventory level at the two leading Chinese polyolefins producers’ end coupled with the uptrend in the futures market. However, starting from Thursday, May 21, the market is cooling down, and coming to Friday morning, May 22, the market is muted in line with the decline in the futures prices. As such, the trader opined that the uptrend in crude oil and futures prices could not effectively improve market sentiment in China as the performance of the downstream market is not strong yet.
As SSESSMENTS.COM noted, LLDPE and PP futures prices started to decline by Friday morning after mostly maintained firm since the beginning of the week. As of May 22, September 2020 PP prices in the Dalian Commodity Exchange decreased by CNY75/ton ($10/ton) day on day, settling at CNY7,108/ton ($1,000/ton) by Friday (May 22) settlement. Likewise, September 2020 LLDPE prices in the Dalian Commodity Exchange decreased by CNY80/ton ($11/ton) day on day, settling at CNY6,455/ton ($908/ton) by Friday (May 22) settlement.
In terms of import offers, this week, Indian and Qatari producers have announced June shipment offers for PE and PP cargoes to the country. The trader received June shipment offers for Indian PE cargoes across all grades at $755-890/ton on LC at sight, CIF Huangpu port depending on the grades. As for PP, offers for Indian PP Homopolymer grades are available between $850-930/ton on the same payment and delivery term. More added, the offers will be lower by $10/ton to the other destination port or if the payment is on the TT basis. However, the trader is not interested to take the cargoes citing that the offers are too high, SSESSMENTS.COM noted. While for Qatari origin, June shipment offers for HDPE Film and HDPE Blow Moulding increased by $30/ton and $40/ton, respectively compared to last week’s levels on the back of limited allocation due to the maintenance shutdown at the producer’s end.
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