- Local PP prices fluctuated during the first quarter of 2020
- Import PP prices were mostly on a downtrend
- Coronavirus outbreak negatively impacted PP demand up to the end of Q1 2020
SSESSMENTS.COM noted that PP prices in China were under pressure in the first week of Q1 2020 due to the high market inventory. PP Homo Raffia prices at CNY7,400/ton ($1,048/ton) on cash, EXW China basis and including 13% VAT surfaced at this particular time. Then, the sudden surge in crude oil prices after an Iranian military commander was killed in Iraq on January 3, 2020, provided support for a rebound in PP prices. The uptrend lasted for two weeks as in the week commencing January 20, PP prices softened following the decline in futures prices ahead of Chinese New Year Holiday. The downtrend prolonged until the first half of February while from the second half of February to the first week of March, PP prices in the domestic China market increased. The prices were on downtrend once again from the second week of March to the end of the month.
In the import market, the availability of PP Homo Raffia of Russia origin was high during January. Therefore, offers for the cargoes declined to $860/ton on LC at sight, CIF China main port basis. The offer was the lowest level for PP Homo Raffia in the China market in January. In February, import PP Homo Raffia offers were still corrected down as some traders were willing to sell cargoes at a loss to clear out inventory. In the first half of March, import offers were stable on a weekly comparison and the downturn was recaptured in the second half of March. SSESSMENTS.COM data showed that offers and deals at $700/ton-level started to surface in the week commencing March 23. An Indian petrochemical producer slashed offers by $40/ton to $780/ton on LC at sight, CIF China main port basis. Deals for PP Homo Raffia from the leading Indonesian polyolefins producer were concluded at $760/ton with the same payment and delivery term, $40/ton lower than the initial offer level. On March 31, deals for PP Homo Raffia cargoes from India were already at $700/ton on LC at sight, CIF China main port basis.
In general, PP demand in China during the first quarter of 2020 was subdued, SSESSMENTS.COM noted. In January, demand for PP was affected by the Coronavirus outbreak and the Chinese New Year Holiday. Most buyers left early for the holiday while others held procurement activities. In the first half of February, PP demand further weakened as the government imposed travel restrictions. Slight improvements in demand were seen in the second half of the month as manufacturers resumed production activities and gradually increased the operating rate. However, the demand was still considered weak up to the end of March due to the slow end product sales owing to Coronavirus spread globally, significant drops in crude oil prices, and expectation for further decreases in prices. On the supply side, supply for PP during Q1 2020 was ample.
Market players opined to SSESSMENTS.COM that the downtrend in local and import PP prices would continue to the Q2 2020. Import offers to China will head to $600/ton as competition between foreign suppliers is expected to become fiercer. Meanwhile, demand will remain slow amidst the battle against the Coronavirus outbreak globally.
Range of local PP transactions in January on cash, EXW China basis (CNY term includes 13% VAT, all equivalent in USD excludes VAT)
| Origin | Product | Transaction Type | Offers (CNY/ton) | Equivalent in USD/ton |
|---|
| China | PP Homo Film | Offer Given | 7,950-8,400 | 996-1,053 |
| China | PP Homo Injection | Offer Given | 7,500-8,700 | 940-1,090 |
| China | PP Homo Injection | Price List | 8,050-8,750 | 1,009-1,097 |
| China | PP Homo Injection | Sold | 8,850-8,900 | 1,109-1,115 |
| China | PP Homo Raffia | Offer Given | 7,400-8,000 | 927-1,003 |
| China | PP Homo Raffia | Sold | 7,600-7,650 | 953-959 |
| China | PP Homo Raffia | Price List | 7,550-7,850 | 946-984 |
| China | PP Homo Raffia (CTO) | Offer Given | 7,300-7,500 | 915-940 |
| China | PP Homo Raffia (CTO) | Sold | 7,350-7,680 | 921-963 |
| China | PP Block Copolymer | Offer Given | 8,300-8,900 | 1,040-1,115 |
| China | PP Block Copolymer | Offer Received | 9,100-9,850 | 1,141-1,235 |
| China | PP Random Copolymer Injection | Price List | 9,400-9,800 | 1,178-1,228 |
| China | PP Random Copolymer Injection | Offer Given | 9,300-9,850 | 1,166-1,235 |
Range of import PP transactions in January on LC at sight, CIF China Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Southeast Asia | PP Homo Film | Offer Received | 1,030-1,050 |
| Far East Asia | PP Homo Injection | Offer Given | 910 |
| Indian Subcontinent | PP Homo Injection | Offer Given | 915-920 |
| Middle East | PP Homo Injection | Offer Given | 910-950 |
| Middle East | PP Homo Injection | Offer Received | 910-920 |
| Middle East | PP Homo Injection | Sold | 910 |
| Southeast Asia | PP Homo Injection | Offer Received | 1,000-1,020 |
| Central Asia | PP Homo Raffia | Offer Given | 880-900 |
| Central Asia | PP Homo Raffia | Offer Received | 860-880 |
| Central Asia | PP Homo Raffia | Purchased | 880 |
| Central Asia | PP Homo Raffia | Sold | 900 |
| Far East Asia | PP Homo Raffia | Offer Given | 990-1,020 |
| Indian Subcontinent | PP Homo Raffia | Offer Given | 915-930 |
| Indian Subcontinent | PP Homo Raffia | Offer Received | 930 |
| Indian Subcontinent | PP Homo Raffia | Buy Idea | 900-920 |
| Indian Subcontinent | PP Homo Raffia | Sold | 930 |
| Middle East | PP Homo Raffia | Offer Given | 900-930 |
| Middle East | PP Homo Raffia | Offer Received | 880-910 |
| Middle East | PP Homo Raffia | Purchased | 880 |
| Middle East | PP Homo Raffia | Sold | 900-910 |
| South America | PP Homo Raffia | Offer Received | 900 |
| Southeast Asia | PP Homo Raffia | Offer Received | 940-1,020 |
| Far East Asia | PP Block Copolymer | Offer Given | 980-1,040 |
| Middle East | PP Block Copolymer | Offer Given | 960-1,000 |
| Far East Asia | PP Random Copolymer Injection | Offer Given | 1,100-1,140 |
| Far East Asia | PP Random Copolymer Injection | Offer Received | 1,100 |
| Middle East | PP Random Copolymer Injection | Offer Given | 1,050-1,070 |
Range of local PP transactions in February on cash, EXW China basis (CNY term includes 13% VAT, all equivalent in USD excludes VAT)
| Origin | Product | Transaction Type | Offers (CNY/ton) | Equivalent in USD/ton |
|---|
| China | PP Homo Film | Offer Given | 7,100 | 890 |
| China | PP Homo Injection | Offer Given | 6,750-8,500 | 846-1,065 |
| China | PP Homo Injection | Price List | 6,950-7,850 | 871-984 |
| China | PP Homo Injection | Sell Idea | 6,900 | 865 |
| China | PP Homo Injection | Sold | 6,800 | 852 |
| China | PP Homo Raffia | Offer Given | 6,600-7,350 | 827-921 |
| China | PP Homo Raffia | Offer Received | 6,680-7,150 | 837-896 |
| China | PP Homo Raffia | Sell Idea | 6,800 | 852 |
| China | PP Homo Raffia | Sold | 6,700-7,050 | 840-884 |
| China | PP Homo Raffia | Price List | 6,700-7,200 | 840-902 |
| China | PP Homo Raffia (CTO) | Offer Given | 7,100 | 890 |
| China | PP Homo Raffia (CTO) | Sold | 6,900-7,050 | 865-884 |
| China | PP Block Copolymer | Offer Given | 7,200-7,700 | 902-965 |
| China | PP Random Copolymer Injection | Price List | 8,600-9,200 | 1,078-1,153 |
Range of import PP transactions in February, CIF/CFR China Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Payment Term |
|---|
| Indian Subcontinent | PP Homo Injection | Offer Given | 910 | LC at sight |
| Middle East | PP Homo Injection | Offer Given | 850-855 | LC at sight |
| Middle East | PP Homo Injection | Offer Received | 880 | LC at sight |
| Middle East | PP Homo Injection | Bid Given | 840 | LC at sight |
| Central Asia | PP Homo Raffia | Offer Given | 880-890 | LC at sight |
| Central Asia | PP Homo Raffia | Offer Given | 830-840 | TT |
| Far East Asia | PP Homo Raffia | Offer Given | 900-1,010 | LC at sight |
| Far East Asia | PP Homo Raffia | Offer Received | 950 | LC at sight |
| Indian Subcontinent | PP Homo Raffia | Offer Given | 870-890 | TT |
| Indian Subcontinent | PP Homo Raffia | Offer Given | 880-900 | LC at sight |
| Indian Subcontinent | PP Homo Raffia | Offer Received | 900 | LC at sight |
| Middle East | PP Homo Raffia | Offer Given | 870-880 | TT |
| Middle East | PP Homo Raffia | Offer Given | 840-920 | LC at sight |
| Middle East | PP Homo Raffia | Offer Received | 840-980 | LC at sight |
| Middle East | PP Homo Raffia | Bid Given | 820 | LC at sight |
| Southeast Asia | PP Homo Raffia | Purchased | 1,080 | LC at sight |
| Far East Asia | PP Block Copolymer | Offer Given | 930-1,040 | LC at sight |
| Middle East | PP Block Copolymer | Offer Received | 900 | LC at sight |
| Southeast Asia | PP Block Copolymer | Offer Received | 1,150 | LC at sight |
| Far East Asia | PP Random Copolymer Injection | Offer Given | 1,050*-1,100 | LC at sight |
| Middle East | PP Random Copolymer Injection | Offer Received | 940 | LC at sight |
Description: *Offers on CFR basis
Export PP offers in February on LC at sight, FOB China basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| China | PP Homo Raffia | Offer Given | 880-950 |
| China | PP Homo Raffia | Offer Received | 900* |
Description: *Received by Vietnamese buyers
Range of local PP transactions in March on cash, EXW China basis (CNY term includes 13% VAT, all equivalent in USD excludes VAT)
| Origin | Product | Transaction Type | Offers (CNY/ton) | Equivalent in USD/ton |
|---|
| China | PP Homo Film | Offer Given | 6,200-6,300 | 777-790 |
| China | PP Homo Injection | Offer Given | 5,800-7,400 | 727-927 |
| China | PP Homo Injection | Price List | 6,700-7,900 | 840-990 |
| China | PP Homo Raffia | Offer Given | 5,750-7,300 | 721-915 |
| China | PP Homo Raffia | Sold | 6,900-7,050 | 865-884 |
| China | PP Homo Raffia | Price List | 6,500-7,550 | 815-946 |
| China | PP Homo Raffia (CTO) | Offer Given | 5,900-6,900 | 739-865 |
| China | PP Block Copolymer | Offer Given | 7,400-8,200 | 927-1,028 |
| China | PP Random Copolymer Injection | Price List | 7,850-9,200 | 984-1,153 |
Range of import PP transactions in March on LC at sight, CIF/CFR China Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Far East Asia | PP Homo Injection | Offer Given | 860-960 |
| Far East Asia | PP Homo Injection | Offer Received | 800-950 |
| Indian Subcontinent | PP Homo Injection | Offer Given | 870-880 |
| Indian Subcontinent | PP Homo Injection | Offer Received | 870 |
| Indian Subcontinent | PP Homo Injection | Sold | 870-880 |
| Middle East | PP Homo Injection | Offer Given | 710-880 |
| Middle East | PP Homo Injection | Offer Received | 860-870 |
| Middle East | PP Homo Injection | Sold | 860-870 |
| Southeast Asia | PP Homo Injection | Offer Received | 840 |
| Far East Asia | PP Homo Raffia | Offer Given | 860-960 |
| Far East Asia | PP Homo Raffia | Offer Received | 930-950 |
| Far East Asia | PP Homo Raffia | Sold | 870-900 |
| Indian Subcontinent | PP Homo Raffia | Offer Given | 780-880 |
| Indian Subcontinent | PP Homo Raffia | Offer Received | 780-870 |
| Indian Subcontinent | PP Homo Raffia | Buy Idea | 840-850 |
| Indian Subcontinent | PP Homo Raffia | Sold | 700 |
| Middle East | PP Homo Raffia | Offer Given | 710-880 |
| Middle East | PP Homo Raffia | Offer Received | 700-960 |
| Middle East | PP Homo Raffia | Sold | 840 |
| Southeast Asia | PP Homo Raffia | Offer Given | 800-940 |
| Southeast Asia | PP Homo Raffia | Offer Received | 840-995 |
| Southeast Asia | PP Homo Raffia | Bid Received | 760 |
| Southeast Asia | PP Homo Raffia | Purchased | 760-800 |
| Far East Asia | PP Block Copolymer | Offer Given | 880-980 |
| Far East Asia | PP Block Copolymer | Sold | 900-930 |
| Middle East | PP Block Copolymer | Offer Received | 820-1,030 |
| Southeast Asia | PP Block Copolymer | Offer Given | 990 |
| Southeast Asia | PP Block Copolymer | Offer Received | 890-1,075 |
| Southeast Asia | PP Block Copolymer | Bid Given | 1,000 |
| Far East Asia | PP Random Copolymer Blow | Offer Given | 1,010 |
| Middle East | PP Random Copolymer Blow | Offer Received | 880 |
| Southeast Asia | PP Random Copolymer Blow | Offer Given | 1,060 |
| Far East Asia | PP Random Copolymer Injection | Offer Given | 1,050 |
| Middle East | PP Random Copolymer Injection | Offer Received | 1,060 |
| Southeast Asia | PP Random Copolymer Injection | Offer Received | 1,125 |
Export PP offers in March on LC at sight, FOB China basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| China | PP Homo Raffia | Offer Given | 860 |
Tags: Asia Pacific,China,English,NEA,PP,Quarterly
Published on April 8, 2020 9:51 AM (GMT+8)
Last Updated on April 8, 2020 9:52 AM (GMT+8)
