Import homo-PP offers escalated in China, resistance shown

Several international suppliers this week have announced fresh homo-PP offers to China with significant hike from last week in light of improving demand and tightened supply. However, respond is not as positive as it was expected with buyers resisted strongly to new levels.

China market has not been a favourable export destination for overseas sellers since earlier this year mostly due to the lengthy supply in local ground at competitive levels. “Domestic inventories are falling faster than expected which allowed sellers to constantly lifting offers over the past couple of weeks. Overseas sellers therefore gained support,” a market source said.

Latest import offers for Saudi Arabia and Indian origin cargoes indicated approximate $60-70/ton increased week on week, reaching $1065-1090/ton CFR China, LC 0-30 days term. A buyer in Southern China area received Saudi’s homo-P yarn offers at $1090/ton said, “This is too high even though market is improving. We only can accept at around $1020/ton with the same term.”

Another trader sold Saudi cargoes at $1060/ton CFR China, LC 60 days term added, “It become difficult to attract buying interest at higher prices since domestic materials remain on a more competitive position. This might cap the upside in import ground. We fear that the current trend might not sustain if futures trading loose momentum.”

Import homo-PP to China currently stands at $1010-1090/ton CFR China, LC 0-60 days term. Prices below the $1000/ton threshold have not repeated this week.