Import homo-PP prices below $1000/ton emerge in China, SEA
In China, a trader operating in Ningbo reported that they received offers for Indian homo-PP raffia at $950-980/ton CFR, cash. The buyer commented, “Demand remains sluggish and crude oil prices are weakening. We think that prices still have room for additional decreases.” A trader based in Shanghai stated, “Buyers are limiting their purchases to their immediate needs at the moment as prices continue to decrease. The yuan devaluation did not have a positive effect on our export business as we are focusing on the local market nowadays. We are planning to monitor the market closely before deciding on our next move.” The trader is offering Indian PP raffia at $950-980/ton CFR, cash.
In China, overall import homo-PP prices are currently reported at $950-1080/ton on a CFR, cash equivalent basis, with many players commenting that offers above the $1000/ton level may start to disappear from the market as buyers are not interested in replenishing at the upper ends of the range.
In Southeast Asia, a source from an Indian producer reported that they lowered their homo-PP prices to $980/ton CIF SEA, cash. The source said, “No one is purchasing beyond their immediate needs and sentiment remains bearish. However, we hope that demand may improve a bit in September ahead of the holiday season. We believe that import homo-PP prices may reach the bottom at around $930-940/ton.”
A trader operating in Vietnam reported that they received import homo-PP raffia offers for Indian and Brazilian origins at $990/ton and at $950/ton, respectively, on a CIF Vietnam, cash basis. A second trader in Vietnam also stated that they were offered Saudi Arabian homo-PP at $960/ton CIF, cash. He commented, “We are not planning to replenish our stocks at the moment as we are worried we will make losses if we purchase material now that will be delivered in a month’s time. In September, we feel that import homo-PP prices may hit the $900/ton threshold.”
Overall import homo-PP raffia prices in Southeast Asia currently stand at $950-1100/ton on a CIF, cash equivalent basis. However, most players think that the upper ends of this range are unworkable at the moment.
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