Dutiable homo-PP concluded above $1100/ton mark in China

Import homo-PP to China has been very tight over the past month as most international suppliers are diverting attention to other market, where netbacks are considered to be better. In addition to improved local demand, several deals for dutiable cargoes this week are observed at above the $1100/ton mark, based on CFR China, LC 30-60 days.

In fact, deals for Indian homo-PP in the distribution market are at $1100/ton, CFR China, LC 60 days – some $30/ton higher than official price list given directly from the maker. A buyer purchased the cargoes informed, “There are very limited quantity available and we have no choice but to accept higher levels as we have not been able to obtain this cargoes in months. We are optimistic about the near term market outlook.”

A major Saudi Arabia producer reportedly opened new homo-PP offers at $1130/ton CFR China, LC 30 days term today. After initial resistance, the supplier sold the available quantity at only $10/ton discount. A distributor source added, “Demand shall be better in the coming days as converters have been able to transfer the costs to end product prices. And the streamline of environmental inspection process would ease buying interest to a certain extend.”

Another Saudi Arabia producer added, “We have limited quantity of homo-PP injection this week without determined prices, however we are planning to direct the cargoes to Southeast Asia for better netback.”

Players are also speculating that Dalian Commodity Exchange market would continue to firm up in the near term, and together with tight spot supply, market might remain firm until National Day holiday in early October.