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After several weeks of hold firm stance on import homo-PP cargoes to China due to lack of inventories pressure despite constantly softening local prices, most Middle Eastern producers have agreed to discount to this market this week.

In fact, prices above the $1100/ton threshold based on CFR China term are no longer attractive to buyers in this country amid competitive local cargoes. This, in addition to weakening demand in nearby Southeast Asia market, act as the main driver behind such move. A trader purchased the cargoes at $1050/ton, some $70/ton discount from initial prices said; “We only procured a small quantity to avoid any supply disruption in the coming month. At the moment, local materials are still more competitive, hence buyers are not very interested in import cargoes.”

Several other deals for Middle Eastern homo-PP are also reported in the range $1045-1060/ton CFR China, LC AS term, all reduced from initial offers at above $1100/ton mark. “Even at such reduction, the number of deals concluded for this origin is relatively smaller than Indian cargoes. The pressure on import material still exist; yet we think international suppliers might not rush to reduce prices too quickly.”

Import homo-PP to China currently stands at $1035-1130/ton CFR China, LC 0-30 days term.