Chinese PP prices feel pressure from higher demand and government controls

摘要

On April 13,polypropylene(PP)raffia prices rose 35% week-on-week to 8,600 yuan($l,214.71)/mt due to tighter supply in higher demand for fiber-grade material to produce masks.On April 14,prices saw a correction of 350 yuan($49.44)/mt and fell to 8,250 yuan($1165.27)/mt ex-works after the Chinese government announced that both price controls and strict quality controls would take effect amid rising demand.Meanwhile,the PP CFR Fareast Asia marker fell $20/mt on the day to $875/mt on April 14,which was higher $195/mt higher compared to prices on April 6.Propylene prices rose $145/mt week-on-week to $745/mt CFR China on April 14 as buyers scrambled to secure imported and Chinese-origin spot cargoes.Additionally,prompt domestic propylene prices were stronger compared to imported material because of higher consumption from fiber-grade PP producers to meet increased demand for masks.Compared to the previous week,Shandong propylene prices rose 1.4K yuan($197.74)/mt to 6.9K($974.59)/mt while east China prompt prices rose 2.5K yuan($353.11)/mt to 7.5K yuan($1,059.34)/mt ex-tank on April 13.