China’s domestic polyethylene (PE) prices were mostly softer due to weak buying interest amid high inventories of finished products at some
downstream plants and bearish sentiment towards feedstock PE prices. As a result, spot transaction prices in the domestic market declined
significantly. Futures prices rose in the second half of the week although this provided limited support to spot prices. PetroChina and Sinopec’s
combined polyolefin inventories were higher at around 875,000 tonnes on 16 April.
US dollar-denominated import prices continued to drop this week. Buyers of imported cargoes showed little interest in suppliers’ high offers due to
sharply falling domestic prices. Some suppliers then reduced offers to China but the reductions generated little interest from buyers, who considered
import prices as still uncompetitive compared with local prices.
Domestic producers to kick off annual turnarounds in Q2
Stock depletion among traders may be slow due to weak buying interest
Supply of import cargoes may remain generally tight; no sign of US imports
Domestic polypropylene (PP) spot prices fell sharply this week due to sluggish demand and lower futures prices in the
first half of the week.
Downstream producers showed limited buying interest in view of subdued sales for their new orders, although their
feedstock stocks were heard at low levels. This, combined with declines in domestic PP futures prices in the first half of
the week, led to sharp drops in spot prices. However, this failed to buoy buying sentiment. Suppliers cut their prices to
In the second half of the week, spot prices rose in line with rebounded futures prices. Traders made purchases to
complete targeted volumes, but soon downstream producers resumed purchasing on a need-on basis. Trading sentiment