China’s local PP market sees correction on retreating futures
However, ChemOrbis Price Index data show that the weekly average of local homo-PP prices in China has been undergoing a downward correction recently after posting sharp increases for five consecutive weeks. This is mainly due to softer PP futures on the Dalian Commodity Exchange, which witnessed a weekly decrease of CNY189/ton ($28/ton) as of August 23.
Local prices for homo-PP raffia have decreased CNY100/ton ($15/ton) on the low end so far this week while the high end has remained stable when compared to last week.
A trader commented, “The market has followed futures prices softer so far this week. Demand for local cargoes is better than imports given the depreciation of yuan against the US dollar while sellers are not under sales pressure given limited local supplies.”
A converter opined “We have not started to make any purchases yet as local prices have witnessed a downward correction recently after posting sharp increases in the past weeks. Sellers are more aggressive this week; however, we prefer to adopt a wait and see stance for now.”
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