On the pricing front, Shenhua managed to raise the auction price for homo-PP by CNY 40/ton, bolstered by a rebound in futures contracts on the Dalian Commodity Exchange. However, the auction price for LLDPE slipped by CNY 60/ton compared to the previous session, reflecting mixed sentiment in the market.
This latest adjustment marks the fourth consecutive month of price cuts for PP and the fifth for HDPE, underscoring the sustained bearish sentiment in the market. Despite these aggressive reductions, market responses remain tepid.
This decline is largely attributed to the strengthened Rupiah, which has appreciated by approximately 5% against the US dollar since July. Typically, a stronger Rupiah exerts downward pressure on commodity prices denominated in the local currency.