Limited demand caused PP, PE prices to fall deeper in June in the market

Limited demand caused PP, PE prices to fall deeper in June in the market

Due to China's change in imports of Polyolefins, a sharp decline since mid-March. This price drop is attributed to limited demand due to off-season, lower Dalian futures prices, and pressure from domestic price downward trend affecting PP and PE prices, there is a risk of a decrease this June.

A resurgence in COVID-19 cases in India, Southeast Asia, and Taiwan has also further weakened market sentiment.

Limited demand across polyolefins market

According to a business expert, “Demand to buy imported goods is very low because this is not the season for PE items. The decline in PP and Pe prices in the region in other countries also experienced an extension of the reduction in import prices, as buyers prioritized the domestic market to meet urgent needs. In addition, supply is expected to increase in the coming days remembering new factories and less maintenance.”

Putting pressure on polyolefin prices, Dalian futures prices have recently declined despite supportive factors, including the recent recovery in oil prices vàand a slight decrease in domestic polyolefin inventories.

This is attributed to China's intervention in commodity prices, aimed at countering the "excessive speculation" that is driving up raw material prices. The government makes it clear that it will have "zero tolerance" for monopolies and hoarding.

As of May 25 this week, September PP and LLDPE futures on the Dalian Commodity Exchange have fallen by CNY 25/ton ($35/ton) and CNY 368/ton ($57/ton) respectively. compared to last week.

According to market sources, the total polyolefin stocks of the two major producers in China fell by 25,000 tons this week, to 740,000 tons on May 25. This reflects limited domestic consumption.

Note: HTML is not translated!
Hotline: +84 88 888 3428
Wechat: +84 88 888 3428 Nhắn tin Facebook Zalo: 088 888 3428