CBIChina

China’s Sinopec cut its polymer ex-works prices by as much as 5.7% or CNY 900/tonne ($131/tonne) from last week on inventory pressure and inactive trade amid bearish sentiment, some distributors and traders said on Tuesday.
All sales branches of Sinopec in Beijing, Shanghai and Guangzhou slashed its ex-works prices CNY 550-700/tonne or 3.4-4.4% to CNY 15,050-15,900/tonne for low density polyethylene (LDPE) film and by CNY 500-600/tonne or 3.3-3.8% to CNY 15,000-15,150/tonne for linear low density PE (LLDPE) film.
For high density PE (HDPE), Sinopec lowered its ex-works prices CNY 700-900/tonne or 4.5-5.7% to CNY 14,800-15,000/tonne for injection, CNY 400/tonne or 2.6% to CNY 14,900-15,100/tonne for blow moulding, CNY 200-400/tonne or 1.3-2.6% to CNY 14,900-15,200/tonne for film and CNY 200/tonne to CNY 15,600/tonne for yarn grade.
Sinopec has reduced its polypropylene (PP) ex-works prices CNY 200-600/tonne. It decreased homo polymer PP CNY 500-600/tonne to CNY 16,000-16,350/tonne and for co-polymer PP grade by CNY 200-500/tonne to CNY 16,000-16,200/tonne.
Trades were still lean following the price cuts on weak demand amid bearish sentiment, with most traders seeing a negative outlook and were keen to offload cargoes.
Selling prices were mixed but largely hovering around their cost levels or on case-by-case negotiations.
Most downstream converters adopted a wait-and-see stance and were in no hurry to purchase material, preferring to wait for a clearer picture to enter the market.