Sources informed SSESSMENTS.COM that the market in the first two days since the Labor Day holiday ended was quite active due to rising oil and future prices. The Dalian Commodity Exchange on May 6 listed LLDPE future price for September 2020 settled at CNY6,370/ton ($794/ton) after posting an increase of up to CNY340/ton ($47/ton) compared to the settlement price on Thursday, April 30.
However, whilst future price still settled at CNY6,450/ton ($804/ton) on the May 7 listing, trader says, “Coming to yesterday afternoon, September futures price started to drop and the market became quiet.” The market is now muted with PE futures forecast to fall, trader source told SSESSMENTS.COM. This event affected the local PE Cargoes offer announced by the producer on May 8 which posted a decrease of CNY100-200/ton from the previous day's price.
A Chinese trader shared with SSESSMENTS.COM that PE Cargoes from the USA is actively traded in the market. The trader claimed that in April, approximately 300,000-400,000 tons of PE cargoes of US origin were concluded in China while for Indian cargoes, the volume is about 200,000 tons for PE and PP together. SSESSMENTS is unable to independently verify the numbers by the trader. However, according to China's National Bureau of Statistics, the total PE imports in April 2019 were 1,468,880 tons. Out of this figure, the volume for US origin cargoes were 151,066 tons while India origin for PE and PP together were 25,718 tons.
For this week, the latest deals for US PE Cargoes increased $10-20/ton for HDPE and LLDPE grades compared to last week, as reported to SSESSMENTS.COM. The trader also received offers from Middle Eastern producer for HDPE Blow Molding and HDPE Films respectively at $740-750/ton and $760-770/ton on LC at sight for this week. While HDPE Blow Moulding offer from the region reappears after an absence in the previous week, HDPE Film Cargoes recorded an increase of $20-30/ton from April 28 price. All import offers above are on CIF China Main Port Basis.
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DailySSESSMENTS: China PE Price 7th May 2020
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