Polymer inventories in China have slipped slightly as the country gradually returns to work after the months-long Covid-19 lockdown.
Inventories held by key state-controlled producers Sinopec and PetroChina were 1.035mn t today, down by 100,000t from a week earlier. But stocks are still high compared with typical levels of around 700,000t.
Many parts of China are seeing a return to downstream polymer manufacturing. Convertors in eastern China are at 70-80pc operating rates, while those in northern China are at 65-75pc.
Beijing has lifted all remaining transportation curbs in Wuhan, boosting manufacturing activity in the city where the coronavirus pandemic first emerged. Industrial activity is resuming, with 80pc of businesses in Wuhan restarting as of last week.
Chinese prices for linear low-density polyethylene (LLDPE) film rose this week on the back of the increased activity. Argus assessed LLDPE film prices in China at $680-710/t cfr today, up from $640-680/t cfr just a week earlier.
But weak ethylene prices continue to exert downward pressure on LLDPE values. Ethylene prices in northeast Asia were down by $90/t today from last week, assessed at $400-410/t cfr.
