Market sources in China revealed to SSESSMENTS.COM that local PP prices continue to rally, supported by soaring demand for face masks amid Coronavirus outbreak. Despite a huge decline in the futures market, the country still sees a strong enthusiasm from buyers in the spot PP market. On Tuesday, April 14, September 2020 PP prices on the Dalian Commodity Exchange settled below CNY7,000/ton-threshold, at CNY6,869/ton ($974/ton), decreased by CNY295/ton ($42/ton) from Monday settlement.
Market talks have it that the highest local prices for PP Homo Fiber are available at CNY88,000/ton ($12,479/ton) on cash, EXW China basis and including 13% VAT. From a local producer, the offers started to drop from the highest of CNY60,000/ton ($8,509/ton) to CNY25,000-30,000/ton ($3,545-4,254/ton) with the same payment and delivery term. Due to insanely high prices, the Chinese government made a decision to step into the market.
Since the Coronavirus outbreak began, thousands of manufacturers in China have nimbly turned to a new and very profitable market, face masks, which is currently in huge demand as infection numbers around the globe surged. This situation has led to a significant increase in demand for raw materials. However, the trader voiced out that the uptrend in China PP market will not be able to sustain for a long time.
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