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In an interesting development in the import homo-PP market in China, couple of traders race to cut prices for Indian and Saudi Arabia origin cargoes in an effort to test market acceptance and deplete inventories before the holiday kick off. The offers stand at $1100-1110/ton for both origins, down by another $20-30/ton compared to the latest adjustment earlier this week.

A good number of deals for these cargoes are reported as buyers considered the price levels to be competitive. “Many other suppliers are still keeping offers firm. We think market would soon follow the correction, as previous offers were too high. More buyers might come back to make replenishment if suppliers are willing to offer discount,” a trader commented.

Another trader purchased the cargoes informed, “The quantity available at this price level is not high as they come from arbitrage traders, however it would affect the general sentiment, pulling other suppliers to the same direction if these prices continue to be available in the coming week.”

In fact, most other Middle Eastern producers are still maintaining offers for homo-PP cargoes at $1180-1190/ton CFR China, LC AS term, which attract very limited buying interest. Players are watching very closely the next move from these makers.