PCC Shanghai obtains licence to trade yuan-denominated PE, PP

04 November 2010 09:53  [Source: ICIS news]

SINGAPORE (ICIS)--PCC Shanghai, a wholly-owned subsidiary of Iran’s Petrochemical Commercial Company (PCC), has obtained a licence to sell polyethylene (PE) and polypropylene (PP) in yuan denomination in the Chinese domestic market, a source close to the company said on Thursday.

"The supplier can start yuan-based transactions this week,” the source said, referring to PCC Shanghai.

The facility to trade in the Chinese yuan would mainly be used for selling PE and PP to local plastic processors from its bonded warehouses in China, while it continued to sell in euros to local stockists on a CFR (cost and freight) China basis, he added.

PCC Shanghai was still waiting for internal approval to offer a door-to-door delivery service to local plastic processors from 2011, supplying PE and PP from its bonded warehouses, he added.

The company had also applied for a licence to sell liquid petrochemicals to Chinese buyers in yuan, and was waiting for approval from the Chinese authorities, he said.  

Iran is a major exporter of PE to China, with its high density PE (HDPE) exports up 33% year on year in the January-to-September 2010 period to around 350,000 tonnes, while its shipments of linear low density PE (LLDPE) increased 15% to 50,000 tonnes over the same period, according to Chinese customs data. 

Iran exported 187,819 tonnes of low density PE (LDPE) to China in the first nine months this year, almost triple the quantity exported in the same period last year, the China custom data showed.

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By: Chow Bee Lin
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