A Chinese trader opined to SSESSMENTS.COM that limited volume for PE and PP cargoes from import will have an insignificant impact on the China market. Market talks have it that Malaysia’s Pengerang Refining And Petrochemical (PrefChem) will delay the restart-up of its PE and PP plants until late this year. If the rumour is true, the trader opined to SSESSMENTS.COM that the export allocation from Malaysia will be limited for the upcoming five or six months as the other Malaysian producer would be prioritizing the allocation to cater to domestic demand. However, the impact on the China market will be insignificant as there are many new plants in the local market projected to start operation by the second half of 2020.
In terms of this week’s offers, import PP Homo Raffia cargoes of Saudi origin captured higher by $30/ton from last week. While for PE, offers for import HDPE Film cargoes of the US and Middle East origin recorded at $820/ton and between $840-850/ton respectively on LC at sight, CIF China Main Port basis. The trader added to SSESSMENTS.COM that most fresh import offers are expected to come out next Monday or Tuesday as China market will be on holiday from June 25 until June 28.
