CHINAPLAS '14: Outlook for China PP, PE in May remains mixed

23 April 2014 15:39 Source:ICIS News

SHANGHAI (ICIS)--Market sources on the sidelines of Chinaplas 2014 on Wednesday reported mixed outlooks for Chinese polypropylene (PP) and polyethylene (PE) demand, supply and pricing in May.

A source at Taiwan-based producer Formosa Plastics Corporation (FPC) said supply in May was expected to decrease due to maintenance work being carried out by many local producers in the second quarter and the high cost of traders because of increasing offers from local petrochemicals, which will support prices in May.

However, a trader in north China said: “The peak season of agriculture film will end in late April. Meanwhile, downstream manufactures were less than willing to accept the consecutive price lifts, so the downstream demand will decrease in May which may curb the prices.”

A trader in south China said a price trend in May was difficult to predict as it would be largely affected by the linear low density polyethylene (LLDPE) futures prices of Dalian Commodity Exchange (DCE).

Chinaplas, Asia’s largest plastics raw material and machinery exhibition, runs from 23-26 April at the Shanghai New International Expo Centre in Shanghai’s Pudong district.

By Lizzie Yu