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CHINA 

• PP market remains on the tug-of-war 
• Exchange rate, trade war concern deter replenishment for import PE 

Polypropylene (PP)

Thanks to the continuous depreciation of the Chinese Yuan against the US dollar, futures and spot market remain on the firming trend regardless of the demand status. Several converters in the food-packaging sector have expressed the intention to only source material for immediate need citing the low end-product orders.

In the import market, Saudi Arabia and Indian cargoes are available in the range $1220-1225/ton CFR China, LC 0-60 days term. Transactions are thin and therefore, overseas sellers are not putting attention on China market, instead, divert cargoes to other destination where the margin is better.  

Polyethylene (PE)

After a brief firm up, which turned out to be a fault signal of a bottom price, import LLDPE film to China continues to fall to below the $1100/ton threshold, including Saudi Arabia materials. “The Chinese Yuan is too weak now and therefore, we do not find import LLDPE film at $1080-1090/ton CFR China attractive enough. The market might be more active if further discounts are available,” a trader said.

USA cargoes are showing up at $1090-1100/ton for LLDPE film, $1280/ton for HDPE film and at $1150/ton for HDPE injection, CFR China, LC 0-90 days. The trade war fear still lingers in the market causing a detrimental effect on the interest for the USA materials.