Petrotahlil - Traders in China reported that major polyolefin producers increased their offers to the local market as of Monday. Price hikes came in line with higher futures and improving post-holiday demand.
When compared to the levels in the pre-holiday week, PP and PE offers from local producers are up by around CNY300-400/ton ($44-59/ton) for LDPE film and by CNY100-200/ton ($15-30/ton) for homo-PP raffia, HDPE and LLDPE film.
“Spot offers have moved up due to higher futures. PP buyers have been securing material since the holiday ended on Friday while PE buyers are sourcing according to their urgent needs. High monomer prices are also supporting the polyolefin markets,” a trader commented.
According to the trader, spot prices are standing at CNY10400/ton ($1356/ton without VAT) for LDPE film, at CNY7500/ton ($978/ton without VAT) for LLDPE film, at CNY8000/ton ($1043/ton without VAT) for HDPE film and at CNY8050-8200/ton ($1050-1069/ton without VAT) for homo-PP raffia, all on ex-warehouse China, cash including VAT basis.
The two major Chinese producers’ overall polyolefin inventory levels were reported at 800,000 tons on October 12, down 95,000 tons from October 9.
Meanwhile, on the Dalian Commodity Exchange, January LLDPE and PP futures posted cumulative gains of CNY400/ton ($59/ton) and CNY326/ton ($48/ton) on October 9 and October 12, respectively.
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Source : ChemOrbis