Import PP stable amid cautious buying sentiment in China
Sept. 18, 2018
In China, import PP prices followed a stable trend over the week as escalating trade tension with the US as well as concerns about lingering currency depreciation continue to keep demand limited.
The overall range for import homo-PP raffia prices was reported flat when compared to last week at $1220-1250/ton CIF, cash. An Indian producer reported that their raffia offers to China remained unchanged from mid-July at $1230/ton CIF. A South Korean trader and a Thai producer also approached the market with stable PP offers on a weekly basis.
Traders reported that South Korea’s S-Oil has started marketing the PP output from its new plant in the Chinese market and they mostly underlined that the producer’s levels are standing way below than the prevailing market levels. A trader based in Shanghai noted “The producer has begun to offer PP from its new plant at very competitive levels in China.”
Inside China, prices for homo-PP raffia were stable to slightly firmer over the week while PP futures on the Dalian Commodity Exchange mostly fluctuated so far this week. A few traders, whose raffia offers indicate weekly increases of CNY50-200/ton ($7-50/ton) opined, “Local PP prices witnessed slight increases while futures prices were mostly volatile so far this week. Demand is expected to improve soon as the September-October period is the high season for PP applications.”
Local PP prices are likely to extend their slight gains into the second half of September if buying sentiment improves amidst the high-season. As for imports, the emergence of competitively-priced offers may push suppliers to adjust their offer levels. Players also follow the recent firming in spot propylene prices and crude oil futures as these factors may support the market.