Market sources reported that the plunge on China’s LLDPE and PP future prices up to four digits reflected heavily on the spot market. As reported by a local trader to SSESSMENTS.COM, the latest offers for LLDPE Film C4 from the trader’s end declined between CNY100-150/ton ($14-21/ton) compared to March 26. Currently, LLDPE Film C4 prices have broken below CNY6,000/ton-threshold, at CNY5,850-5,950/ton ($825-839/ton) on cash, EXW China basis, including 13% VAT. Likewise, local offers for PP Homo Raffia also lowered by CNY200/ton ($28/ton) compared to the same period. While in the import market, April shipment HDPE Film and LLDPE Film C4 offers from a Saudi producer plunged by $90/ton from March shipment.
The trader further added to SSESSMENTS.COM, local PE, PP offers in the spot market is significantly affected by the rapid decreases in the futures market. So far in March, May 2020 LLDPE and PP future prices on the Dalian Commodity Exchanged have dropped cumulatively by CNY1,135/ton ($160/ton) and by CNY957/ton ($135/ton), respectively. Due to this, the trader lamented on having difficulties in concluding deals since most buyers believe that the prices have yet to reach the bottom.
