China petrochemical futures mixed; near-term demand recovery in doubt
SINGAPORE (ICIS)–China’s petrochemical futures markets were mixed on Thursday morning as demand may remain soft despite a further relaxation in the country’s COVID-19 curbs.
China petrochemical futures prices in CNY/tonne at 11:30 Beijing time (3:30 GMT)
|Product||8 December||% change from previous session|
|Monoethylene glycol (MEG)||3,937||0.2%|
|Linear low-density polyethylene (LLDPE)||7,993||-0.3%|
|Polyvinyl chloride (PVC)||6,091||0.1%|
|Purified terephthalic acid (PTA)||5,008||1.5%|
Source: Dalian Commodity Exchange, Zhengzhou Commodity Exchange
“We don’t see any strong demand recovery for commodities in the short term,” said Zhang Junfeng, an analyst at brokerage China Merchant Securities.
“Consumer confidence still needs time to rebuild,” Zhang said.
Late on 7 December, the Chinese government announced 10 measures to optimise its COVID-19 policy, including allowing people with mild or no symptoms to quarantine at home, and cancelling of testing requirements for domestic travelers.
Meanwhile, any type of temporary restrictions that have usually led to business shutdowns or lockdowns will no longer be allowed.
These changes are considered the most sweeping of adjustments to the government’s zero COVID-19 policy and, for many, a de facto full re-opening for the country.
($1 = CNY6.98)
(recasts throughout for clarity)
Thumbnail image: At the Jingtang Port District of Tangshan Port in Tangshan City, north China’s Hebei Province on 7 December 2022. (Source: Xinhua/Shutterstock)
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