Local PP prices regain premium over imports in China
According to a trader, firmer futures prices and concerns about supply tightness stemming from enforced shutdowns in the Hangzhou area due to the upcoming G20 summit are helping to push local prices higher. “Players started to replenish their stocks at the end of May or beginning of June as they were running out of material. However, they are buying in small quantities and many deals are being concluded with discounts” added the trader.
An end product manufacturer said, “Demand is expected to firm up in July and August due to the preparations for Christmas while players are only sourcing on an as-needed basis. We are taking a cautious stance towards the market due to slower than expected economic growth in China.”
Local prices for homo-PP injection and raffia currently stand at CNY6800-7700/ton ex-warehouse China, cash equivalent basis inc VAT ($884-1000/ton without VAT).
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