More import homo-PP offers emerged below $1000/ton mark in China

As buying interest in local China market remains below expectation and domestic cargoes hold more competitive position, international suppliers are implementing more aggressive stance on pricing to China this week, with import homo-PP priced below the $1000/ton mark become more popular at the moment.

Earlier this week, several traders forward selling Indian homo-PP cargoes at $990/ton CFR China, LC 30 days term for shipment before 15 June. “The tight availability of import cargoes does not provide much support to the market as local material continue to hold more competitive position on comfortable supply,” a trader commented.

In addition, a trader agreed to $20/ton discount on USA homo-PP yarn to conclude deal for 400 tons of material at $950/ton CFR China, LC AS term said, “We have been trying to hold our cargoes over the past month, yet unable to deplete the cargoes. Many other traders are also in need to improve cash flow, and therefore we think that room for further reduction is still available.”

In contrast, there are very few offers for Middle Eastern cargoes breached below this psychological benchmark and a majority of suppliers for this origin are still keeping prices in the range $‎1000-1050/ton CFR China, LC 0-90 days term. This is due to the fact that availability for Middle Eastern material, especially yarn grade, is rather limited at the moment. “Besides, we are able to achieve better margins in other markets,” a distributor added. Just yet, the sustainability of such firm stance is currently under question as propylene costs softened. Another trader sold a small quantity of Saudi homo-PP said, “We are not rushing to cut prices to reflect the tight supply condition though we only can sell small quantity these days. We think market trend shall be unified under the pressure of bloated local inventories and weaker sentiment is other major international market.” 

Import homo-PP to China currently stand at $‎950-1050/ton CFR China, LC 0-90 days term.