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Chinese PP and PE market has experienced a slow down in demand since beginning of last week as falling futures prices psychologically hit buying interest. However, spot market sentiment improved since yesterday as a series of unplanned shutdown at local plants created a renewed wave of concern over the supply condition, according to players.

Details of the shutdown are shown in the following table:

It is reported that Fujian Refining & Petrochemical Company Limited (FREP) has completed inspection at one out of its 11 crackers, however the reason behind the shutdown remain unclear. The company therefore has issued an official announcement to its regular buyers that it would not be able to fulfill any order till end of the month. Local spot offers for both PP and PE today firmed up CNY100-200/t ($15-30/t) following the news.

A trader suspended all offerings to domestic buyers by second half of the trading day said, “We managed to concluded more deals for LLDPE film today and we expect further price hike in the coming days. Some of the domestic shutdown has resumed production recently, however, we think that market would remain firm in spite of mediocre demand condition given the stubborn tightness in the import market.” 

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