Chinese buyers started showing interest in import homo-PP cargoes

As reported earlier, replenishment activities in China has been weak since players returned from the Lunar New Year holiday, from which domestic inventories accumulated to a record high levels. As a result, traders in the country are actively seeking opportunities to re-export on hand cargoes, giving no attention to import offers in the past one month. This week, Chinese players, especially converters, started showing some interest in import homo-PP, signaling signs of reviving demand condition.

A buyer explained, “There has not be many import offers or purchases of deep-seas cargoes since we resumed operation in early February, which means, cargoes arrival in late April will be very limited. We are checking on new offers and might procure some quantity if prices meet our expectation.”

Couple of deals for Middle Eastern homo-PP are reported in the range $1100-1110/ton CFR China, LC AS term for late April to early May arrival. A trader sold Saudi’s homo-PP injection at $1110/ton with the same term said, “The quantity is rather small, however, at least buyer has shown interest in the cargoes again.”

Another trader sold Saudi’s homo-PP yarn at $1100/ton CFR China added, “We only managed to conclude a small deal after some discount as buyers are not aggressive yet. We have been trying to maintain our offers above the $1100/ton threshold for couple of weeks and have no intention to breach below the mark. We hop to see better demand in the near term.”

Import homo-PP to China at the moment stand at $1060-1170/ton CFR China, LC 0-60 days term.