A Chinese trader informed SSESSMENTS.COM that the recent policy from the Chinese government has changed sentiment in domestic PP market. On May 9, the General Administration of Customs announced that National Customs Department discovered and issued a list of underqualified goods related to the epidemic prevention materials. The list includes more than 1.86 million unqualified masks and 16 enterprises dealing with the export market. Following the situation, the Bureau of Commerce of Zhejiang City announced that starting from May 10, the country will suspend export for some products, such as Coronavirus testing reagents, testing masks, medical protective clothing, respirators, infrared thermometers, and other medical materials as well as non-medical masks.
As stated to SSESSMENTS.COM, the steps took by the government in order to ensure the quality of exported medical supplies has cooled down the hype in the PP market. Offers for PP in the domestic market were adjusted in contrast with the previous expectation that the price should be stable or firmer coming into this week. Compared to a week earlier, the local offers for PP Homo Raffia decreased by CNY200/ton ($28/ton) following the downward movement in the futures market. Considering the current situation, the trader believes that there is still a possibility for local PP prices to decrease further.
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