Traders cut import offers for Indian homo-PP to China

Demand in China is cooling off over the past week as continuous falling futures market dampened buyer confident in the near term outlook. While a good number of market participants are expecting to see a fresh round of replenishment before the National day holiday, couple of major traders in the country decided to step back on the offers to entice demand.

In fact, a trader open offers for approximate 1000 tons of Indian homo-PP yarn at $1130/ton CFR China today, which is about $20-30/ton drop compared to earlier this month. Such development is out of market expectation considering the current supply tightness condition. A source close to the trader reported, “Even with the reduction, our regular customers are not aggressively fetching the cargoes. We continue to monitor the respond before making further decision.” Explaining further, the trader added that continuous weakening local market due falling futures trading and rising inventories levels might threaten the market prospect in the near term. Pre-holiday replenishment activities might concentrate on local ground instead of import market, the source said.  

Other suppliers are still holding firm on their cargoes with Saudi Arabia origin homo-PP ranging from $1180-1200/ton CFR China term though deals are scarce. “The falling Indian homo-PP offers might not reflect the overall market situation as the shipment is very far (late November). We have not implemented any adjustment on our offers while prefer to wait and see in the coming days due to lacking of availability.”