Traders lowered import Saudi's homo-PP offers to China

It is reported that couple of traders has stepped back on their homo-PP offers for Saudi Arabia origin to China this week as a result of fierce competition from domestic material. In fact, the latest prices are reported at $1050-1060/ton CFR China, LC AS term, which portray $50-60/ton reduction week on week basis. A buyer commented, “Domestic homo-PP has reached CNY8000/ton including VAT, EXW China term, which is equivalent to $990/ton without VAT wit the same term. Therefore, even with the cut in offers, import materials are still much higher than domestic cargoes.” Traders however, believed that market shall begin to stabilize soon since demand in the West remain strong and international suppliers are showing very limited interest in offering to China. “Availability might tighten in the medium term as import arrival fall short,” a trader said, therefore, buyers might start seeking for mainstream homo-PP cargoes soon, the source added.