Print

There have not been any major changes in futures trading throughout the morning session. May delivery contract for PP continues seeing CNY60/ton ($9/ton) reduction to CNY8989/ton ($1212/ton without VAT) while LLDPE inches CNY50/ton ($8/ton) lower to CNY9330/ton ($1258/ton without VAT).  

The softening trend in the domestic ground is not slowing down. Spot offers for both PP and PE fall another CNY50-100/ton ($8-16/ton) day-on-day amid persistent sluggish demand.

Homo-PP offers in Eastern China stand in the range CNY‎‎‎8850-9000/ton ($‎‎1193-1213/ton without VAT), EXW China, cash equivalent.

LLDPE film offers in Northern China are at CNY9200-9400/ton ($‎‎1240-1267/ton without VAT), with the same term.

On a positive aspect, offers at the lower end of the overall price range might be more stabilized in the coming days, as buyers are showing better acceptance toward these levels. However, the cautious stance remains strong after a minor pile up in local inventories. “If total PP and PE inventories at major domestic producers’ warehouses reach the 1 million tons threshold after the weekend, market might turn soft again. We prefer to take a conservative stand for now,” a trader said.