How did PE Weekly Inventory Change at Main Ports？

SCI99

2019-07-23

How did PE Weekly Inventory Change at Main Ports？

Preface

At present, China’s PE market supply is still sufficient. For the Chinese-made supply, the data were relatively complete. But there was barely complete data for the inventory of imported resources accumulated at ports and the date of resources arriving at ports. SCI will briefly analyze the resources at main ports in China last week.

Inventory at ports inched down, and attention should be paid to Iran resources

This week, China’s overall inventory at ports barely changed, maintaining the downtrend. According to SCI, the resources from Iran will arrive at ports intensively, most of which were HDPE film resources. Given that the present imported spot in China’s market is still sufficient, traders sold resources actively. According to SCI, as the Iran resources arrived at ports intensively in recent 2 weeks, the import-supply pressure in China will still mount in the short run. If the deals of futures are sparse, the spot price will still be under pressure next week.

Total Inventory at East China Ports Remained at Highs

The Shanghai port and the Ningbo port are the main ports in East China. According to SCI, over the past week, the PE inventory structure at Shanghai port and Ningbo port barely changed, and the overall inventory inched down this week. The sample inventory at Ningbo port was relatively stable, while the sample inventory at Shanghai port decreased by 2%-3%. But SCI believes that these were only statistics. There were newly arrived resources from Iran out of some warehouses in Shanghai. This week, although traders sold resources actively, the overall inventory was consumed slowly.

In general, most HDPE resources were accumulated in the warehouses at Shanghai and Ningbo ports. The HDPE inventory at sample warehouses in Shanghai increased by 80%-120% W-O-W. Due to the small capacity of the sample warehouses in Ningbo, the inventory increased by 100%-200% W-O-W. The LLDPE inventory at both Shanghai and Ningbo ports decreased by 5%-10% W-O-W. Attention should be paid to the inventory structures at East China ports.

LDPE inventory at South China ports was less, with price remaining at lows

Main ports in South China were Huangpu, Xiamen and China (Guangdong) Pilot Free Trade Zone Nansha Area of Guangzhou. The inventory at South China ports was relatively stable last week. The overall LDPE spot inventory was at a low level. The downstream foreign deals decreased, so the LDPE demand in South China was sluggish. Attention should be paid to foreign orders in South China.

Inventory at North China decreased

The main ports in North China were Tianjin and Qingdao. This week, the inventory at North China ports barely changed. According to SCI, the HDPE inventory at sample warehouses at Qingdao and Tianjin ports saw ups and downs this week, but the overall inventory inched down Y-O-Y. Next week, the Iran resources will arrive at North China ports intensively. In general, there will be less HDPE inventory in North China.