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CHINA

• Sentiment weakens by the end of the trading week 

• Local producer offers discount scheme on PE 

Polypropylene (PP)

The import homo-PP market is rather calm on the final trading day of the week as overseas sellers have mostly depleted inventories in the earlier days. On the other note, it appears that market has reached the cyclical peak and buyers started showing stiffer resistance toward any increment.

“We tried offering Saudi homo-PP injection at $1280/ton CFR China, but our customers are not interested. At the moment, we only have very small quantity available and would just wait-and-see on the sideline,” an international trader said.

In the local ground, BOPP sheet converters are offering discount on end products following the softness in the futures market. This might be an early sign that a correction is necessary after dramatic hike since buyers come back from the holiday.  

Polyethylene (PE)

The three consecutive sessions of softening on the Dalian Commodity Exchange has dampened the spot sentiment and encouraged local suppliers to produce discount schemes to stimulate demand. A CNY50-100/ton ($7-14/ton) reduction is available depending on the purchase quantity for both HDPE and LLDPE film. 

“The PE market is facing tremendous downward pressure from the weakened ethylene costs and the depreciation of the local currency. Our regular customers are taking very cautious stance now,” a trader offering Saudi HDPE film at $1290/ton CFR China, TT in advance said.