Softer market sentiments, weak demand in domestic PP, PE markets in China

11-Mar-10

Softer market sentiments and weak demand amid mounting inventory pressures in China have compelled domestic PP and PE sellers to start the week with lower prices a sper Chemorbis. Thus they have chosen to reduce their offer levels to prompt better buying interest even as further decreases continued to be reported as the week progressed. Overall local PP raffia prices stand at CNY10500-10850/ton (US$1314-1358/ton without VAT) on ex-warehouse, cash including VAT basis, indicating US$29/ton decrease at the high end on week over week basis. LDPE film prices are reported at US$1408-1639/ton without VAT- a US$36-58/ton week-on-week decline, LLDPE c4 film prices are at US$1364-1495/ton without VAT- a US$21-43/ton decline, and HDPE film prices are at US$1251-1339/ton without VAT – a US$43-51/ton decline. Buyers are also cautious on their purchases as they expect to see lower prices in the upcoming term. Therefore, many do not want to exceed their minimum needs when purchasing.