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QuarterlySSESSMENTS: Q1 2020 China PE Prices

Author: SSESSMENTS

  • Local PE prices during Q1 2020 were mostly on a downtrend
  • Prices for most import cargoes move in line with local prices
  • Since February 6 up to the end of Q1 2020, local inventory remained above 1 million tons

SSESSMENTS.COM’s data showed that China domestic PE market started Q1 2020 with an uptrend. Due to firmer crude oil prices and stronger futures market, local PE offers increased week over week until the week commencing January 20. In this particular week, some market players started to leave their desk for Chinese Lunar New Year holiday. Therefore, local PE offers reported down by CNY50/ton ($7/ton) on a weekly comparison. In the final week of the month, the China market was at a standstill as the country was on Chinese Lunar New Year holiday. In February, local prices were on a downtrend due to high inventory pressure and the decline in futures prices. The cumulative reductions of local PE offers across all grades within the month was between CNY350-800/ton ($50-114/ton). In the first week of March, local PE offers were stable to a slight increase, but in the following weeks up to the end of the month, the offers continuously decreased. The plunge in crude oil prices on March 9 was a factor that first caused the decreases. Prices were unable to rebound up to the end of the month as buying sentiment weakened.

For import cargoes, the price trend in the first quarter of 2020 was mostly in line with the local price trend. The exception was only the adjustment applied on offers for HDPE Film and HDPE Blow Moulding from a Saudi producer at the beginning of February. Offers for the grades increased between $60-80/ton compared to the level before the Chinese Lunar New Year holiday. The tight supply from the producer’s end was cited as the reason behind the price increases. In March, SSESSMENTS.COM noted that offers for HDPE Film from the Middle East touched $700/ton on LC at sight, CIF China main port basis. Meanwhile, offers below $700/ton-level were already available for LLDPE Film C4. The lowest level for the grade was for Indonesian LLDPE Film C4, at $670/ton with the same payment and delivery terms.

Pertaining to demand, SSESSMENTS.COM was informed that during the first quarter of 2020, demand for PE in China was considered weak. In January, many buyers limited purchasing quantity to avoid keeping high inventory during the holiday. In February, Chinese converters had to delay the restart at the factory as the Coronavirus outbreak forced many parts of the country to extend the Lunar New Year holiday. Up to March, converters still faced the impacts of Coronavirus outbreak as the end-product sales to export destination countries sagged. The significant decreases in crude oil prices also further weakened buying sentiment. 

On the supply side, PE supply in January was reported tight, particularly for import cargoes. Supply for HDPE from Formosa Plastics Corporation was tight due to production issues at the company’s plant stemming from electricity shortage. Meanwhile, allocation from SABIC to the China market slashed by 30% from normal quantity due to limited supply from the producer’s end. Coming back from the Lunar New Year holiday, market players reported to SSESSMENTS.COM that the inventory of the two major polyolefins producers in the country accumulated by 125,000 tons to 1.18 million tons as of February 6. Week over week, the inventory decreased, but by March 31, the level remained above 1 million-level, to be precise, at 1.175 million tons.

Entering Q2 2020, market players contacted by SSESSMENTS.COM believe that PE price movement and demand will depend on the movement of crude oil prices and the development of the Coronavirus outbreak in countries across the world. 

Range of local/localized PE transactions in January on cash, EXW China basis (CNY terms include 13% VAT, all equivalent in USD excludes VAT)

OriginProductTransaction TypeOffers (CNY/ton)Equivalent in USD/ton
ChinaHDPE Blow MouldingOffer Given7,300-7,500918-943
ChinaHDPE Blow MouldingPrice List7,350-7,450924-937
IranHDPE Blow MouldingOffer Given7,400931
ChinaHDPE FilmPrice List7,500-7,550943-949
ChinaHDPE FilmOffer Given7,400-7,800931-981
IranHDPE FilmOffer Given8,0001,006
KuwaitHDPE FilmOffer Given8,1001,019
KuwaitHDPE FilmSold8,1001,019
Middle EastHDPE FilmOffer Given7,500-7,800943-981
QatarHDPE FilmOffer Given7,700968
SaudiHDPE FilmOffer Given7,650-8,000962-1,006
South KoreaHDPE FilmOffer Given7,800981
TaiwanHDPE FilmOffer Given8,1001,019
TaiwanHDPE FilmSold8,1001,019
ChinaHDPE Pipe (PE 100)Price List8,1001,019
ChinaHDPE YarnPrice List7,250-7,600912-956
ChinaLDPE FilmPrice List7,900-8,600993-1,081
ChinaLDPE FilmOffer Given7,800-8,050981-1,012
IranLDPE FilmOffer Given8,1001,019
MalaysiaLDPE FilmOffer Given7,950-8,3001,000-1,044
Middle EastLDPE FilmOffer Given7,700-8,100968-1,019
SaudiLDPE FilmOffer Given8,050-8,1501,012-1,025
ChinaLDPE Film (CTO)Sold7,810-7,890982-992
ChinaLLDPE Film C4Price List7,250-7,550912-949
ChinaLLDPE Film C4Offer Given7,350-7,500924-943
Middle EastLLDPE Film C4Offer Given7,100-7,600893-956
SaudiLLDPE Film C4Offer Given7,600-7,750956-975
SaudiLLDPE Film C4Offer Received7,700968
SaudiLLDPE Film C4Sold7,450-7,500937-943

Range of import PE transactions in January on CIF/CFR China Main Port basis

OriginProductTransaction TypeOffers (USD/ton)Payment Term
Central AsiaHDPE Blow MouldingOffer Given800-810TT
Central AsiaHDPE Blow MouldingOffer Received810-835TT
Middle EastHDPE Blow MouldingOffer Given800-920LC at sight
Middle EastHDPE Blow MouldingOffer Received850LC at sight
Middle EastHDPE Blow MouldingPurchased890LC at sight
Middle EastHDPE Blow MouldingSold860LC at sight
North AmericaHDPE Blow MouldingOffer Received840LC at sight
Central AsiaHDPE FilmOffer Given820-875TT
Central AsiaHDPE FilmOffer Received820-865TT
Far East AsiaHDPE FilmOffer Received850-860LC at sight
Middle EastHDPE FilmOffer Given840-920LC at sight
Middle EastHDPE FilmOffer Received860-910LC at sight
Middle EastHDPE FilmBid Received850-890LC at sight
Middle EastHDPE FilmPurchased890LC at sight
Middle EastHDPE FilmSell Idea890LC at sight
North AmericaHDPE FilmOffer Given810LC at sight
North AmericaHDPE FilmOffer Received840LC at sight
Southeast AsiaHDPE FilmOffer Given940-945LC at sight
Far East AsiaHDPE YarnOffer Given845LC at sight
Indian SubcontinentHDPE YarnSold840-845LC at sight
Central AsiaLDPE FilmOffer Given865-870TT
Central AsiaLDPE FilmOffer Received870-910TT
Middle EastLDPE FilmOffer Given890-950LC at sight
Middle EastLDPE FilmOffer Received920-980LC at sight
Central AsiaLLDPE Film C4Offer Given805-810TT
Central AsiaLLDPE Film C4Offer Received820-855TT
Indian SubcontinentLLDPE Film C4Sold855-860LC at sight
Middle EastLLDPE Film C4Offer Given830-890LC at sight
Middle EastLLDPE Film C4Sold850-860LC at sight
Middle EastLLDPE Film C4Offer Received840-900LC at sight
Middle EastLLDPE Film C4Bid Received830-840LC at sight
Middle EastLLDPE Film C4Purchased860LC at sight
North AmericaLLDPE Film C4Offer Given815-820LC at sight
North AmericaLLDPE Film C4Offer Received860LC at sight
Southeast AsiaLLDPE Film C4Offer Given850-860LC at sight
North AmericamLLDPE C6Offer Given1,040-,1070LC at sight
Southeast AsiamLLDPE C6Offer Given1,140-1,160LC at sight

Range of local/localized PE transactions in February on cash, EXW China basis (CNY terms include 13% VAT, all equivalent in USD excludes VAT)

OriginProductTransaction TypeOffers (CNY/ton)Equivalent in USD/ton
ChinaHDPE Blow MouldingOffer Given7,100-7,300893-918
ChinaHDPE Blow MouldingOffer Received7,450937
ChinaHDPE Blow MouldingPrice List6,800-7,250855-912
IndiaHDPE Blow MouldingOffer Given6,950874
IranHDPE Blow MouldingOffer Given7,100893
QatarHDPE Blow MouldingOffer Given7,450937
SaudiHDPE Blow MouldingOffer Given6,950874
UzbekistanHDPE Blow MouldingOffer Given7,250912
ChinaHDPE FilmPrice List7,100-7,300893-918
ChinaHDPE FilmOffer Given6,750-7,800849-981
IranHDPE FilmOffer Given7,050-7,300886-918
KuwaitHDPE FilmOffer Given7,500943
Middle EastHDPE FilmOffer Given7,250-7,800912-981
QatarHDPE FilmOffer Given7,550949
RussiaHDPE FilmOffer Given7,000880
SaudiHDPE FilmOffer Given7,350-7,800924-981
South KoreaHDPE FilmOffer Given7,350924
UzbekistanHDPE FilmOffer Given6,900868
ChinaHDPE Film (CTO)Offer Given6,850861
ChinaHDPE Film (CTO)Sold6,950874
ChinaHDPE Pipe (PE 100)Price List7,300-8,000918-1,006
ChinaHDPE Pipe (PE 100)Offer Given7,200905
ChinaHDPE YarnOffer Given7,800981
ChinaHDPE YarnPrice List7,000-7,500880-943
IndiaHDPE YarnOffer Given7,000-7,100880-893
ChinaLDPE FilmPrice List7,400-8,100931-1,019
ChinaLDPE FilmOffer Given7,350-8,000924-1,006
IranLDPE FilmOffer Given7,500-7,600943-956
MalaysiaLDPE FilmOffer Given7,550-8,100949-1,019
Middle EastLDPE FilmOffer Given7,500-8,000943-1,006
QatarLDPE FilmOffer Given7,850-8,150987-1,025
SaudiLDPE FilmOffer Given7,700-7,800968-981
ChinaLDPE Film (CTO)Offer Given7,500-7,650943-962
ChinaLDPE Film (CTO)Sold7,550949
ChinaLLDPE Film C4Price List6,750-7,250849-912
ChinaLLDPE Film C4Offer Given6,600-7,200830-905
ChinaLLDPE Film C4Sold6,700-6,800842-855
BrazilLLDPE Film C4Offer Given6,950874
MalaysiaLLDPE Film C4Offer Given6,800-6,900855-868
Middle EastLLDPE Film C4Offer Given6,700-7,300842-918
QatarLLDPE Film C4Offer Given7,250912
RussiaLLDPE Film C4Offer Given6,800-6,850855-861
SaudiLLDPE Film C4Offer Given7,100-7,650893-962
ThailandLLDPE Film C4Offer Given7,000880
United Arab EmiratesLLDPE Film C4Offer Given7,800981
ChinaLLDPE Film C4 (CTO)Offer Given6,850861
ChinaLLDPE Film C4 (CTO)Sold6,850861
South KoreamLLDPE C6Offer Given8,5001,069

Range of import PE transactions in February on CIF China Main Port basis

OriginProductTransaction TypeOffers (USD/ton)Payment Term
Central AsiaHDPE Blow MouldingOffer Given795TT
Central AsiaHDPE Blow MouldingOffer Received800-810TT
Far East AsiaHDPE Blow MouldingOffer Given850-860LC at sight
Far East AsiaHDPE Blow MouldingBid Received750-760LC at sight
Far East AsiaHDPE Blow MouldingSold780LC at sight
Middle EastHDPE Blow MouldingOffer Given830LC at sight
Middle EastHDPE Blow MouldingOffer Received800-970LC at sight
Middle EastHDPE Blow MouldingPurchased890LC at sight
Central AsiaHDPE FilmOffer Given810TT
Central AsiaHDPE FilmOffer Received810-830TT
Central AsiaHDPE FilmSold828TT
Middle EastHDPE FilmOffer Given830-860LC at sight
Middle EastHDPE FilmOffer Received810-990LC at sight
Middle EastHDPE FilmBuy Idea780-800LC at sight
Middle EastHDPE FilmSold830-840LC at sight
Southeast AsiaHDPE FilmOffer Given935LC at sight
Southeast AsiaHDPE FilmOffer Received935LC at sight
Middle EastHDPE Pipe (PE 100)Offer Received1,160LC at sight
Southeast AsiaHDPE Pipe (PE 100)Offer Given960LC at sight
Southeast AsiaHDPE Pipe (PE 100)Offer Received915LC at sight
Central AsiaHDPE YarnOffer Given750LC at sight
Far East AsiaHDPE YarnOffer Received890-920LC at sight
Indian SubcontinentHDPE YarnOffer Given820LC at sight
Indian SubcontinentHDPE YarnOffer Received820-840LC at sight
Indian SubcontinentHDPE YarnSold820LC at sight
Southeast AsiaHDPE YarnOffer Given910-920LC at sight
Southeast AsiaHDPE YarnOffer Received910-920LC at sight
Central AsiaLDPE FilmOffer Received855-865TT
Middle EastLDPE FilmOffer Given870-930LC at sight
Middle EastLDPE FilmOffer Received870-915LC at sight
Central AsiaLLDPE Film C4Offer Given810TT
Central AsiaLLDPE Film C4Offer Received795-820TT
Indian SubcontinentLLDPE Film C4Offer Given800-810LC at sight
Indian SubcontinentLLDPE Film C4Offer Received800LC at sight
Indian SubcontinentLLDPE Film C4Sold800-810LC at sight
Indian SubcontinentLLDPE Film C4Buy Idea750LC at sight
Middle EastLLDPE Film C4Offer Given800-845LC at sight
Middle EastLLDPE Film C4Sold830-835LC at sight
Middle EastLLDPE Film C4Offer Received810-880LC at sight
Middle EastLLDPE Film C4Purchased810LC at sight
Southeast AsiaLLDPE Film C4Offer Given880-930LC at sight
Southeast AsiaLLDPE Film C4Offer Received880-930LC at sight
Southeast AsiamLLDPE C6Offer Given1,085LC at sight

Range of local/localized PE transactions in March on cash, EXW China basis (CNY terms include 13% VAT, all equivalent in USD excludes VAT)

OriginProductTransaction TypeOffers (CNY/ton)Equivalent in USD/ton
ChinaHDPE Blow MouldingOffer Given6,900-7,200868-905
ChinaHDPE Blow MouldingOffer Received6,750-7,500849-943
ChinaHDPE Blow MouldingPrice List6,700-7,200842-905
UzbekistanHDPE Blow MouldingOffer Given7,000880
ChinaHDPE FilmPrice List6,900-7,250868-912
ChinaHDPE FilmOffer Given7,000-7,400880-931
IranHDPE FilmOffer Received6,100-6,400767-805
IranHDPE FilmSold6,900-7,150868-899
MalaysiaHDPE FilmOffer Given7,100893
Middle EastHDPE FilmOffer Given6,400-7,550805-949
RussiaHDPE FilmOffer Given6,950874
SaudiHDPE FilmOffer Given6,700-7,100842-893
South KoreaHDPE FilmOffer Given6,700842
TaiwanHDPE FilmOffer Given7,750975
TaiwanHDPE FilmOffer Received6,800855
ThailandHDPE FilmOffer Given7,500943
ChinaHDPE Pipe (PE 100)Price List7,250-7,800912-981
ChinaHDPE Pipe (PE 100)Offer Given7,600956
ChinaHDPE YarnPrice List6,500-7,300817-918
IndiaHDPE YarnOffer Given7,100893
ChinaLDPE FilmPrice List6,900-8,200868-1,031
ChinaLDPE FilmOffer Given6,800-7,850855-987
MalaysiaLDPE FilmOffer Given7,100-7,700893-968
Middle EastLDPE FilmOffer Given6,400-7,900805-993
QatarLDPE FilmOffer Given7,450-7,900937-993
SaudiLDPE FilmOffer Given7,000880
ChinaLLDPE Film C4Price List5,850-7,300736-918
ChinaLLDPE Film C4Offer Given5,850-7,200736-905
ChinaLLDPE Film C4Sold5,450-6,700685-842
BrazilLLDPE Film C4Offer Received5,800729
IndonesiaLLDPE Film C4Offer Given6,800855
IndonesiaLLDPE Film C4Offer Received6,000754
MalaysiaLLDPE Film C4Offer Given6,150-6,700773-842
Middle EastLLDPE Film C4Offer Given6,300-7,200792-905
QatarLLDPE Film C4Offer Received7,150899
RussiaLLDPE Film C4Offer Given6,550-6,700824-842
SaudiLLDPE Film C4Offer Given6,750-7,350849-924
SaudiLLDPE Film C4Offer Received6,300792
ChinaLLDPE Film C4 (CTO)Offer Given6,650-6,750836-849

Range of import PE transactions in March on CIF/CFR China Main Port basis

OriginProductTransaction TypeOffers (USD/ton)Payment Term
Central AsiaHDPE Blow MouldingOffer Received760-810TT
Middle EastHDPE Blow MouldingOffer Given820-845LC at sight
Middle EastHDPE Blow MouldingOffer Received780-800LC at sight
Middle EastHDPE Blow MouldingBid Given760LC at sight
North AmericaHDPE Blow MouldingOffer Received855*LC at sight
Southeast AsiaHDPE Blow MouldingPurchased810-820LC at sight
Central AsiaHDPE FilmOffer Received760-830TT
Far East AsiaHDPE FilmOffer Given840-845LC at sight
Far East AsiaHDPE FilmOffer Received720-750LC at sight
Far East AsiaHDPE FilmSold750LC at sight
Middle EastHDPE FilmOffer Given700-865LC at sight
Middle EastHDPE FilmOffer Received720-940LC at sight
Middle EastHDPE FilmBuy Idea760-770LC at sight
Middle EastHDPE FilmPurchased730-770LC at sight
Middle EastHDPE FilmSold760-850LC at sight
North AmericaHDPE FilmOffer Given780-800LC at sight
North AmericaHDPE FilmOffer Received810-890LC at sight
North AmericaHDPE FilmSold780-800LC at sight
Southeast AsiaHDPE FilmOffer Given750-870LC at sight
Southeast AsiaHDPE FilmOffer Received740-830LC at sight
Southeast AsiaHDPE FilmPurchased830LC at sight
Southeast AsiaHDPE FilmSold800LC at sight
Middle EastHDPE Pipe (PE 100)Offer Given870LC at sight
Middle EastHDPE Pipe (PE 100)Offer Received900LC at sight
Southeast AsiaHDPE Pipe (PE 100)Offer Given865LC at sight
Southeast AsiaHDPE Pipe (PE 100)Offer Received865-890LC at sight
Far East AsiaHDPE YarnOffer Received770LC at sight
Indian SubcontinentHDPE YarnOffer Received790-810LC 90 Days
Indian SubcontinentHDPE YarnOffer Received790LC at sight
Southeast AsiaHDPE YarnOffer Given880LC at sight
Southeast AsiaHDPE YarnOffer Received800LC at sight
Central AsiaLDPE FilmOffer Received850-860TT
Indian SubcontinentLDPE FilmOffer Given820LC at sight
Indian SubcontinentLDPE FilmOffer Received850LC at sight
Indian SubcontinentLDPE FilmSold820LC at sight
Middle EastLDPE FilmOffer Given800-900LC at sight
Middle EastLDPE FilmOffer Received800-900LC at sight
Middle EastLDPE FilmBuy Idea800-810LC at sight
Middle EastLDPE FilmPurchased860LC at sight
Middle EastLDPE FilmSold890-900LC at sight
Southeast AsiaLDPE FilmOffer Given885LC at sight
Southeast AsiaLDPE FilmOffer Received820-840LC at sight
Central AsiaLLDPE Film C4Offer Received7750-810TT
Far East AsiaLLDPE Film C4Offer Received710-750LC at sight
Far East AsiaLLDPE Film C4Offer Received740LC 90 Days
Far East AsiaLLDPE Film C4Bid Received700LC at sight
Far East AsiaLLDPE Film C4Buy Idea620LC at sight
Far East AsiaLLDPE Film C4Purchased740-750LC 90 Days
Indian SubcontinentLLDPE Film C4Offer Given690-700LC at sight
Indian SubcontinentLLDPE Film C4Offer Received690-800LC at sight
Indian SubcontinentLLDPE Film C4Sold690-700LC at sight
Middle EastLLDPE Film C4Offer Given690-850LC at sight
Middle EastLLDPE Film C4Sold750-850LC at sight
Middle EastLLDPE Film C4Offer Received710-980LC at sight
Middle EastLLDPE Film C4Bid Received750LC at sight
Middle EastLLDPE Film C4Buy Idea700LC at sight
Middle EastLLDPE Film C4Sell Idea830LC at sight
North AmericaLLDPE Film C4Offer Received680-870LC at sight
North AmericaLLDPE Film C4Purchased790LC at sight
North AmericaLLDPE Film C4Sold780-790LC at sight
South AmericaLLDPE Film C4Offer Given790LC at sight
South AmericaLLDPE Film C4Buy Idea740-750LC at sight
Southeast AsiaLLDPE Film C4Offer Given770-860LC at sight
Southeast AsiaLLDPE Film C4Offer Received690-860LC at sight
Southeast AsiaLLDPE Film C4Bid Given680LC at sight
Southeast AsiaLLDPE Film C4Buy Idea740-750LC at sight
Southeast AsiaLLDPE Film C4Purchased670-740LC at sight
Southeast AsiaLLDPE Film C4Sold770LC at sight
Southeast AsiamLLDPE C6Offer Received1,030-1,055LC at sight
Description: * Offers on CFR basis

Tags: Asia Pacific,China,English,NEA,PE,Quarterly

Published on April 11, 2020 5:23 PM (GMT+8)
Last Updated on April 11, 2020 5:23 PM (GMT+8)