Import homo-PP follow stable to soft trend in China

After a week of falling futures prices that forced local traders to cut domestic offers in order to encourage sales, import market started to show synchronous respond on the first trading day of the week.

In fact, couple of international traders have down adjusted their homo-PP prices by $10-20/ton compared to last week for Saudi Arabia origin with a trader informed, “Demand is very weak as an after match of falling futures trading. Besides, the recent depreciation of the Chinese Yuan also discouraged buying interest for import cargoes. We tried offering Saudi cargoes at $1020/ton CFR China, however, have not been able to achieve any deals yet.”

Meanwhile, major Indian producer re-opened homo-PP offers to China at $1010/ton CFR, LC 30 days term after several weeks absence from the market. This price is well below other peer’s cargoes such as Middle Eastern, with a trader said, “We purchased some quantity as this level is pretty competitive now. Domestic India market must have been slow after the demonetisation. Looking ahead, we expect further reduction to emerge.”

Meanwhile, other suppliers are holding firm on their offers, especially for Middle Eastern material at $1040-1060/ton CFR China, LC 0-90 days term. This however, does not attract buying attention.