23 May 2022
While traders reported having achieved some deals at the lower end of the overall price range during the early trading hours, the market generally remains cautious about the demand prospect.
On average, import HDPE film to China has reached $1170/ton at the time of this report while LLDPE film is at $1165/ton, all based on CFR China. These PE prices merely covered half of the usual conversion costs of $150/ton for PE producers.
20 May 2022
Trading sentiment improved slightly on the final trading day of the week after Shenhua agreed to additional discounts on homo-PP cargoes.
While the 27.5% dropped in PE import arrival rung an alarm sound on the market, players were not surprised at the fall in PP imports as China has established its net exporter status.
The Yuan has depreciated about 6.4% against the US dollar over the past month, making it more expensive to purchase US dollar nominated cargoes, especially when the local market shows little sign of improvement.
While offering negotiation space to customers, key local producers also weigh the option of further production rate cuts to counterbalance the persistently sluggish demand condition.
19 May 2022
Trading sentiment improved slightly from the previous trading day, particularly for PP, however, Chinese bidders continue to show limited interest in the LLDPE cargoes.
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