Print

After two weeks of stabilising, traders decided to lift import homo-PP offers to China by $30-50/ton compared to earlier this week given strong upstream costs, lack of availability and surging offers in other markets. Latest price list has reached $1290-1300/ton CFR China, LC 90 days term on the final trading day of the week.

In contrast to initial expectation that buyers would resist the new levels in favour of more competitive local cargoes, deals have been realised with only $10/ton discount from offered prices. A trader sold the cargoes informed, “The concluded quantity is rather small, however it does reflect the willingness to accept the hike amongst buyers. Saudi Arabia cargoes are very limited these days, which might encourage more sellers to implement t similar hike in the near term.”

It is worth noting that only large-scale converters are interested in such high prices due to the nature of exporting end-product businesses. Meanwhile, small and medium size buyers remain very reluctant claiming sufficient pre-holiday replenishment.