11 Oct 2022
The plunging Dalian Commodity Exchange, the flare-up of COVID-19 infection cases in Northern China and renewed anti-COVID measures in megacities including Shenzhen and Xian all come together to erode the demand outlook.
Chinese bidders seem losing purchasing appetite right on the second trading day of the week after the futures market took a dive by the end of the morning session.
10 Oct 2022
Sources said that prices in the distribution market remain more competitive and given the soft end-product businesses, there is no rush in proceeding with new purchases at the moment.
Compared to homo-PP, Chinese buyers have not been able to stock up as much LLDPE film cargoes as they would normally do at this point of the year, partly due to the lack of availability from Middle Eastern suppliers
Home to many carbide-based PVC plants, a number of producers here started to face difficulties to move or receive cargoes, forcing them to further reduce operating rates.
Spot PP and PE cargoes rose sharply over the weekend and at the time of this report, sellers seem to have obtained a clear view of the market acceptance.
Purchasing activities, however, declined sharply, once again signalling the lack of confidence among market participants to accept such abrupt price hikes.
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