30 May 2012 10:01 [Source: ICIS news]
By Chow Bee Lin
The Chinese government has earmarked yuan (CNY) 26.5bn ($4.18bn) to subsidise the consumption of energy-efficient household electrical appliances for one year, according to the state-owned Xinhua news agency.
PP resin is a key raw material for components used in home appliances such as washing machines and refrigerators.
PP retail prices in
Locally produced PP injection grade resins were selling at CNY10,550-10,950/tonne ex-warehouse on Wednesday, CNY100-150/tonne higher from last Friday, according to Chemease, an ICIS service in China.
The demand for home appliances and PP resin was unlikely to improve in the short term because only selective types of home appliance will qualify for the energy-efficient subsidy, local appliance manufacturers said.
Any demand improvement will not be immediately felt by the home appliance industry because the sector was holding high inventories, the appliance manufacturers said.
Local home appliance factories were operating at an average of 50-60% capacity because of high inventory and weak demand, they said.
Unconvinced that the demand for home appliance will improve in the short term because of the subsidy, many home appliance makers are still buying PP resin on a hand-to-mouth basis, they added.
The retail sales of
Additional reporting by Angie Li, Rain Dong
($1 = CNY6.34)
Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections