While cost pressure is on the rise, the stubbornly weak demand in China drags this market to multi-month lows and erodes confidence across the region.
In China, the local PP and PE market kickstarted the week on a firm note with spot offers gaining another CNY50/ton from the previous week. Sources said that manufacturers in the agricultural film sector started to return to the market
The Chinese PVC market fell by another CNY100/ton from the previous week due to lethargic purchasing activities and rising inventory pressure.
In India, a major local producer lifted spot PP, LDPE, and PVC offers with effective 7 December, marking the second hike this month.
The premium HDPE film used to carry over LLDPE film is now narrowed as the previous supply tightness has eased substantially.
Without being able to exploit the export opportunities, Chinese sellers would have to focus on the local market in the near term. At the time of this report, purchasing activities are mediocre
Apparently, more sellers are looking to divert their parcels to other markets, such as South America and Africa for better acceptance.
Although the general expectations remained on the trajectory that new price lists would be higher, the lingering weakness in China might anchor the regional market, capping the upside.
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