A Chinese trader contacted by SSESSMENTS.COM stated that local, localized PE prices have gained support from the stronger futures market, hence, procurement activities in the country improved. On Sunday, April 26, the trader mentioned that China market was on an upward trend, both local and localized PE offers increased between CNY50-100/ton ($7-14/ton) compared to Friday’s level (April 24). However, the uptrend left the market players quite cautious as there is no stimulus that could boost the sentiment.
Moving to Monday, April 27, LLDPE prices in the futures market showed an increment and counted as a support system for PE prices to hike as well as improvement in buying sentiment. SSESSMENTS.COM noted that September 2020 LLDPE prices on the Dalian Commodity Exchange increased CNY110/ton ($15/ton) day on day, settling at CNY6,200/ton ($875/ton) by Monday settlement. As such, the trader’s offers for localized HDPE Film, LDPE grades, and LLDPE Film C6 of various origins raised between CNY50-100/ton ($7-14/ton) as compared to Sunday’s level (April 26). Besides prices, buying activities in the China market is also improving today. The trader mentioned that some converters have started replenishing stocks ahead of Labour Day holiday. Still, the volume of purchases is small due to the slow demand from end-users. In the near term, the trader opined that PE prices will be hovering at the current level.
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