China’s PE, PP markets “driven by dual factors”

16 April 2007 12:04  [Source: ICIS news]

SHANGHAI (ICIS news)--Increased domestic supply and the expected influx of imported materials are set to drive prices in China’s domestic polyethylene (PE) and polypropylene (PP) markets, said ICIS pricing’s senior editor Chow Bee Lin on Monday.

 

Chow was speaking at the 3rd ICIS Asian Polymers Conference in Shanghai, which ends on Tuesday.

 

Most imports into China were currently for the re-export market segment, which were bought on CFR (cost and freight) China terms in US dollars, she said. But more exporters would be seeking to sell into the domestic market segment, which bought in yuan (CNY), when competition in the Asian markets intensify after a large volume of new capacities in the Middle East start up, Chow added.

 

Demand in the re-export segment would not be enough to absorb all the new supply, hence the domestic market would be an important sector for imported material, she said.

 

China consumed about 10.8m tonnes of PE and 8.7m tonnes of PP in 2006. Meanwhile, domestic PE demand increased by 400,000 tonnes and PP demand increased by 500,000 tonnes during the same period.

 

 


By: Angela Chen
+ 65 6780 4359



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