A Chinese trader shared with SSESSMENTS.COM on changes for Qatar producer's PE cargoes. According to the trader, the offers by the producer for LLDPE Film C4 to the Chinese market recorded at $740/ton or $50/ton higher than the previous week. While for HDPE film, the producer has increased the price by $30-40/ton with offers stands at $770-780/ton. The trader had imported some volume from the Qatari producer before the price adjustment and also purchased LLDPE Film C4 of US origin at below $700/ton, therefore are not interested now to make fresh procurement. All transactions on LC at sight, CIF China main ports basis.
For PP, the latest offers from a Saudi producer stands at $900/ton for Homo Raffia grade on LC at sight, CIF China main ports basis. The trader lament the price is exaggerated, moreover, China’s local market has begun to cool off after the government contain price hikes, as reported by SSESSMENTS.COM earlier. The trader added that local PP offers in the spot market have been subsiding with price proposal for local PP cargoes across all grades will not be changing much because demand is still in recovery for most sectors, except face mask makers.
The trader explained further to SSESSMENTS.COM, based on May 2020 PP contract, the gap between current spot and futures price is rather huge at CNY1,500-2,000/ton ($ 212-283/ton). Likewise, local offers for PP Fiber also lowered to between CNY10,000-15,000/ton (CNY 1.418-2.127/ton) as previous mind-blowing prices disappeared from the market. The upward trend won't last long as it is depending on hedgers and new mask producers. The trader also decided to refrain from putting new bid while releasing existing inventory, estimating both PP and PE outlook will go down after the rally throughout last week.
