China’s homo PP market stabilizes after rapid run-up in prices
“PP futures on the Dalian Commodity Exchange dropped sharply last Friday and its effects are already being felt on the market. It is difficult to conclude deals as buyers are showing resistance nowadays. In the past few weeks, prices posted significant gains mainly due to gains in the futures market because demand from downstream buyers has not improved yet. We decided to roll over our prices from last week,” reported a source from a global producer.
A source from another producer said that prices remained stable this week while demand is normal. The source also added, “Prices could face some correction now since they rose too fast in the past few weeks. We expect prices to remain stable over the short term. We are planning to shut our plant in mid-August for a planned shutdown, but it is not related to the G20 Summit. Since we will have a shutdown at our plant, we are making some stocks and we do not feel any sales pressure now.”
“China’s economy is still not in good shape and we are seeing slow demand, especially for exports. Offers given on RMB basis have posted some declines while USD offers are stable,” a packaging film manufacturer reported.
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