Print

In China, futures prices on Dalian Commodity Exchange ended today trading session at mix direction with contract 1609 for PP inched CNY14/ton ($2/ton) higher while LLDPE futures slipped CNY15/ton ($2/ton). Both contracts settled at CNY6771/ton ($881/ton without VAT) and CNY8145/ton ($1060/ton without VAT).

Domestic producers continue to lift spot offers for both PP and PE by another CNY50/ton ($8/ton) compared to yesterday in the absence of inventories pressure, market sources reported. However, buyers are not very receptive about continuous price rally in the past few days, from which most purchases are limited to cover immediate needs only. In the distribution markets, pessimistic traders are offering some CNY100-200/ton discount on PP cargoes in order to deplete inventories faster ahead of the Dragon Boat Festival, starting this Thursday, 9 June 2016. A Beijing based trader said, “We prefer not to hold high stock level as the restart of several local plants this week might result in improved supply in the coming week.”

Import homo-PP to China is temporary free from any fluctuation as sellers pull to the side-line to monitor further market movement before deciding on the fresh offer levels. This is especially when demand condition in the nearby Southeast Asia market witnesses visible pick up recently. Players also reported seeing off-grade homo-PP cargoes from Borouge 3 plant are up for auction in the country. This might not generate significant impact on the general market at the moment, however, traders are expressing their concern over the possibility of increased supply once Borouge 3 reaches full operating rate.

Import PE to China continues to face downward pressure with very limited activities observed. A trader in Shanghai collecting bid for Brazilian LLDPE film cargoes reported, “Our customers are placing bid as low at $1005/ton CFR China term, however we are not in rush to accept such low prices. Supply for this grade from international sellers is not so comfortable; therefore we prefer to hold our cargoes for now.”

In Southeast Asia, sentiment in the import PP market remain very firm, yet most major suppliers are now withdraw to the side-line to monitor the market before setting their fresh offers. Regional buyers are speculating on a continuous firming trend in import PP prices in the near term with the support from tightened supply. A regional buyer received offer for Saudi Arabia homo-PP injection at $990/ton CIF Vietnam, LC AS term said, “Dutiable cargoes might reach $1000/ton threshold in days, however, we are not expecting buying interest to be strong at this level. Our suppliers have not given any offer since beginning of the week while we prefer to stay cautious after several purchases we made last week.”

Several deals for import homo-PP are also observed in Indonesia market, yet buyers are not showing strong willingness to enrol big purchases when the fasting month has started. A regional trader sold Vietnamese homo-PP at $1030/ton CIF Indonesia, LC AS term said, “We compromised our margins to supply to regular customers, nevertheless, we are not planning to maintain this level in the near term given higher costs in local Vietnam market.” In fact, local PP prices in Vietnam has increased by VND500,000-600,000/ton ($22-26/ton) from yesterday which might affect export prices from the country.

The regional PE market is quiet in trading activities; accept some deep-seas LLDPE film cargoes still continue to go up from earlier trading session. Vietnamese buyers reported receiving Iranian LLDPE film at another $20/ton hike, making a total increase of $50/ton for this cargo from last week offer. A trader commented, “We decided to increased the price due to lack of sales pressure for LLDPE film. On the other hand, we find it very difficult to move HDPE film cargoes even though we are open to negotiation.”

Even converters in Indonesia are not showing strong buying appetite after domestic producers cut prices earlier this week, blaming slower end product demand amid fasting month. A market source added, “We are on the sideline waiting for further reduction in the near term as we believed that falling ethylene costs might renew downward pressure on the PE market in the near term.”

For detail Daily Prices in China and Southeast Asia market, kindly visit our website atwww.commoplast.com. Please contact our representatives at commoplastinfo@gmail.com for log in assistance.