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The first round of price increment on the first trading day after the Golden Week that saw $30-40/ton hike in import offers for Southeast Asian homo-PP cargoes and $10-20/ton in dutiable materials has not slowed down demand in China. Instead, buyers aggressively source cargoes to meet the urgent need, boosting the general sentiment.

Today, additional hike is observed in import homo-PP market that sends Southeast Asian cargoes to $1315-1340/ton, a $15-20/ton higher than the beginning of the week while Saudi Arabia cargoes reach $1260-1270/ton, up $10-20/ton. 

“We have achieved deals for Vietnamese materials at $1340/ton CFR China, LC AS term. With this, we have successfully lifted price for this cargo by $100/ton from late September,” a regional trader informed. 

Acceptance for the latest price list has decreased, but not significantly. Chinese buyers said that with the CNY450-600/ton ($65-87/ton) surge in the local spot offers compared to 28 September; the current import offers remain competitive. 

“We proceed with the purchases with the expectation that local market might hold firm in the near term. The current tightness might ease slightly in early November with the arrival of previously purchased import cargoes, however, impact on the overall supply might not be too large,” a trader said.