Local PP, PE market in China revive despite ChinaPlas

Asian players are hit by surprise that trading activities in China improve significantly this week in spite of the on going Chinaplas event, which were initially expected to dampen the general sentiment. Chinese traders informed of satisfactory number of deals concluded in domestic ground since the week begins, yet there are also several concerns being discussed.

It is reported that local PP and PE offers in China firmed up three days in a row this week, accounted for a total increased of CNY150-300/ton ($22-43/ton). Meeting with a trader in Guangzhou, who were receiving high number of calls, “Sales are very good today thanks to improved buyer confident after energy market recovered and bright prospect from the One Belt One Road trade initiative. We plan to lift our offers slightly in the next trading day.”

On Sunday, 14 May 2017, a high profile summit took place in China where Chinese officials announced an investment to modernise the Silk Road, which involved $900 billion worth of capital. Market is brightened. In fact, Dalian Commodity Exchange settled higher three straight sessions, re-opening the arbitrage window with spot market. According to CommoPlast data, traders could gain a margin of approximate CNY200/ton ($29/ton) by directing LLDPE film cargoes from spot to futures market, provided they are able to source material at the lower end of the overall price range.

Meeting with a Shanghai based trader during ChinaPlas, the source informed, “We are surprised with the market as we were initially expecting slower demand this week due to the exhibition. The number of deals concluded this week is satisfactory, just one factor we are concerning about is that most cargoes takers are still traders. Hence, possibly that if futures market witness downturn in the coming days, spot trading activities might loose steam.”

Kindly visit CommoPlast official website or mobile app to obtain detail local PP and PE prices in China this week.