Southeast Asian PP responded positively to healthy China demand

After a brief down turn during late November, import homo-PP to China has been revived and constantly following the up-trend, accumulated approximate 7-9% increased compared to early December. Players in the country are not expecting this trend to end anytime so soon, which therefore stimulated the Southeast Asian PP market to a certain extent.

In fact, most suppliers have lifted their homo-PP offers to Southeast Asia this week though demand is not catching up the same pace. Major Saudi Arabia maker implemented $30/ton hike on homo-PP cargoes to Vietnam yesterday, reaching $1050/ton CIF, LC AS term. A distributor source informed, “We sold out at only $5/ton discount to northern Vietnam customers. Most buyers in the southern area are not interested in the new prices. Anyway, our principle supplier has directed most of the quantity to China, leaving only small portion for Vietnam.”

Meanwhile, Indonesian buyers reported receiving higher import offers for both dutiable and non-dutiable cargoes. A buyer in the country said, “We were able to source Vietnamese homo-PP at $1110/ton earlier this week, however, at the moment out supplier has lifted offers by $40/ton.”

An international trader offered Indian homo-PP to Indonesia at $1050/ton CIF term, which is $20/ton higher week on week basis, added, “Import homo-PP to China is increasing on a daily basis and we think this would keep Southeast Asian prices on the firming track too.”

Regional buyers are amused with such development in China market, yet many are still reluctant to take large quantity at the new price levels. A PP yarn converter said, “Many international suppliers have withdrawn their prices today. We were informed that import homo-PP from dutiable origin would reach $1100/ton in the coming month with the current condition in China. We prefer to stay cautious since we are covered until early March next year.”