News
Chemical recycler Aduro Clean Technologies Inc. and Ontario-based recycler Switch Energy Corp. will build a pilot plant in Sarnia, Ontario, to recover polyethylene and polypropylene used in agriculture.
Traders say a series of shutdowns in India has provided an opportunity for Chinese PE exporters, at a time when China's surplus imports are awaiting new markets. . Chinese sellers have increased their focus on re-exporting PE to Southeast Asia to ease their inventory pressure.
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Several regional and foreign suppliers have announced July PP and PE prices for China and Southeast Asia mostly at lower levels this week. Weak demand in China as uncertainty over the pandemic persists, has been a major factor pulling prices down in the region.
PP, PVC and PE prices continued to decline as the end of May approached. Markets are poised to end the month on a bearish note, driven by weak demand due to inflationary pressures as well as tight liquidity. Meanwhile, market participants have begun to focus on the June outlook.
The decision of the Central Bank of Egypt to revoke a regulation requiring importers to obtain a letter of credit (L/C) has been welcomed by market participants in an effort to improve supply. However, most market participants remain cautious given the challenging macroeconomic environment in Egypt.
In Vietnam, import PP prices have been going up in the past two weeks after a stable month. This is due to the bullish trend in the Chinese PP market because of the energy cuts of the country.
After a strong rally after the National Day holiday, both local and import PP prices reversed course over the past week as Dalian futures prices fell and have continued to trend lower since then.
Data from ChemOrbis Import Statistics shows that China's cumulative PE imports in the first quarter of 2022 increased by 7.3% year-on-year, reaching around 3.5 million tonnes. The Q4 2021 volume shows the lowest quarterly figure in import statistics since the last quarter of 2017.