17 April 2013 10:53 [Source: ICIS news]
SINGAPORE (ICIS)--China’s domestic spot prices of linear low density polyethylene (LLDPE) and polypropylene (PP) are on a downtrend amid bearish market sentiment as international crude oil prices plummeted in early April, an industry source said.
Traders quoted lower offers at yuan (CNY) 10,200-10,600/tonne ($1,648-1,712/tonne) EXWH (ex-warehouse) for Chinese LLDPE domestic cargoes on 17 April, down by CNY300-400/tonne compared with 3 April.
For Chinese PP yarn domestic cargoes, traders offered at CNY10,150-10,550/tonne EXWH on 17 April, down by CNY150-200/tonne compared with 3 April.
A trader in southern China said that decrease in the upstream feedstock prices has resulted in lower production costs for domestic polyolefin suppliers. Hence, the domestic producers cut their EXW (ex-works) prices.
A trader in northern China believed that LLDPE spot prices may fall below CNY10,000/tonne during the off peak demand season for mulching film from late April.
Traders in east China are holding bearish sentiment on the market outlook and expect that PP yarn prices also may fall below CNY10,000/tonne, in the period of May-June, because of ample supply and weak demand.
A downstream manufacturer in east China indicated that it has no strong buying interest for PP as it has sufficient feedstock inventory.
Ningbo Heyuan Chemical and Xuzhou Haitian Petrochemical started up their new PP units in the first quarter of this year, and are operating at normal rates, while Wuhan Petrochemical will be starting up its PP plant in June.
($1 = CNY6.19)
Additional reporting by Summer Zhang and Lizzie Yu
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