Chinese players: Domestic PP, PE demand sees improvement

Chinese players reported that trading activities in local market witness an impressive overturn today after weeks of hibernation, as converters remained inactive after the long Chinese New Year holidays in mid-Feb.

Domestic spot offers for both PP and PE climb CNY100/t ($15/t) compared to yesterday with a trader in Ningbo said, “After concluding a good number of deal, we technically hold back our offers toward the end of the day with hope price would move up further tomorrow. Our customers from manufacturing side are more active today while local traders tend to take position in the futures trading instead.”

A trader in Yuyao added, “We managed to sell a satisfactory quantity of material today and as a result of many other traders suspended their offering, customers are convinced that prices would increase further in the near term. This is also supported by limited supply from international supplier recently.”

In another news, Shenhua Baotou Coal Chemical Co has been executing expansion project at their coal based polyolefins plant in which coal based PP and PE output would increased by additional 1.2 million tons/year by May 2016.

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