Saudi's homo-PP offers escalated in China

As the Lantern Festival ended, a majority of Chinese players have returned to the market to witness fresh hike in import homo-PP offers from major Saudi Arabia producers. On an average, import homo-PP to China from Saudi Arabia has leaped $30/ton week on week basis to reach $1090-1100/ton CFR China, LC 0-90 days term, CommoPlast data showed.

A trader opens offer at the upper end of the price range commented, “Availability in the market is very limited at the moment, including USA origin cargoes. Besides, strong Southeast Asia demand is also paving way for international suppliers to lift their prices to China.”

Another international trader added, “Our Middle Eastern supplier does not allocating any homo-PP cargoes to China, claiming better margins achieved in Vietnam. Our regular customers are sending in inquiries, though many are still asking for low prices. Futures market firmed up significantly today, and we hope buyers would be more active in the coming days.”

It is reported that most cargoes takers in recent days are still traders, who are leveraging the price gap between spot and futures market; which explain to why purchasing activities in China are still slack compared to Southeast Asia. With futures market skyrocket on the first trading day of the week, traders in the country are hoping to see converters return to make replenishment this week.