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In the previous discussion, many market players were expecting PP supply in China would surge by quarter 3 of the year, in line with the start up of several new coal based plants and resumption of earlier overhauls. However, this assumption is now becoming a big question mark considering a good number of scheduled turnaround and G20 Summit production disruption.  

CommoPlast has combined and listed domestic producers with planned shutdown during late quarter 2 onwards for our member’s reference.

Market is gauging the impact of these shutdowns on the supply during the period with a source expressed his view, “We think domestic PP supply might only improve by end of August, and for this, prices might sustain the current trend till then. Our concern is on the endurance of the futures market, which has been rallied recently. Market might loose confidence if Dalian Commodity Exchange turns weak.”