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Import homo-PP to China has been following the softening trend since late December due to lacklustre demand, which resulted from continuous falling local prices and the depreciation of the Chinese Yuan. This week, in spite of limited number of new offers from international suppliers, traders continue to down adjust their offers to entice buying interest.

Based on CommoPlast data, average import homo-PP prices to China this week dropped $20-30/ton from the pre-holiday period, to reach $1000-1040/ton CFR China, LC 0- 90 days term. There are some rumours about USA homo-PP cargoes traded below the $1000/ton threshold; however, it is unconfirmed at the time this alert is published.

Players are pointing to the same factors that cause such weakening trend, including the availability of competitive domestic cargoes and depreciation of the local currency, which make it more expensive to buy cargoes in US dollar. A trader offered Saudi’s homo-PP yarn at $1020-1030/ton CFR China, LC 90 days term said, “Sales is a little slow, however we remain optimistic about the outlook in the coming week. Most international suppliers are not facing sales pressure; therefore we think it is very less likely that prices might drop significantly in the near term.”

A large portion of market players share similar expectation and that possibility of import homo-PP prices to breach below the $1000/ton threshold would only occur when it comes near to Lunar New Year time.