Import homo-PP extended journey south, yarn supply tightened

As domestic materials continue to hold competitive positive over the import cargoes, international suppliers have extended their effort to smoothen sales process by reducing homo-PP offers to China by additional $20-30/ton from last week. However, it is reported that most cargoes available are injection grades and homo-PP yarn seems very limited in the open market at the moment.

A buyer purchased Saudi Arabia homo-PP injection at $1010-1020/ton CFR China, LC AS term, a $40/ton reduction from last week said, “We have been searching through several bonded warehouses in Ningbo, however, there is no homo-PP yarn cargoes available. There is no impact on the market at the moment as domestic availability is still comfortable, yet it could be an issue in the medium term.”

Several other traders have also lowered offers for Middle Eastern and Indian homo-PP cargoes by $20-30/ton to conclude deals at $1020/ton CFR China this week, “We need to improve our cash flow situation since demand has been muted for sometime now. Looking ahead, we are still not very optimistic about the outlook for the first half of April.”

Most Chinese players are entering the holiday mood, which slow down trading activities in both local and import ground toward the end of the week. Chinese players expected that import homo-PP to the country might touch the $1000/ton mark in the near term, but excluded the yarn grade given the tight availability.

Import homo-PP to China at the moment stands at $1010-1060/ton CFR China, LC 0-90 days term.