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A Saudi Arabia producer has announced fresh homo-PP prices to Indonesia and China right after the long weekend holiday with reduction of $20-30/ton from last week, players in these markets reported.

In fact, several deals for this cargo are concluded at $1050/ton CIF Indonesia, LC AS term with a buyer said, “We placed bid at $1030/ton but the supplier rejected, therefore we proceed with a small replenishment at $1050/ton. Overseas sellers are attempting to limit the range of price reduction, yet we think market still has room to move lower.” Several other sources also added that end product buyers are delaying to place new orders in anticipation of further reduction in the coming weeks, causing a general sluggish condition along the supply chain.

Meanwhile, the producer also slashed homo-PP yarn offers by $30/ton week on week basis to China, reaching $970/ton CFR China, LC AS term. Chinese buyers seem to have accepted prices at this level with a source said, “Though this price is just at the same range as local material at the moment, we think it is acceptable since we export most of our end products. Business is a little slow these couple of months, however we do hope to see better condition in the near term. At the meantime, we have no plan to make large purchases.”

With the upstream propylene costs continue to weaken, regional buyers are taking extra cautious stance when it comes to making replenishment. Buyers in Indonesia and China also have an option to source more competitive cargoes from local ground, which put more pressure on international sellers.