Local homo-PP maintains competitiveness against imports in China
As the below graph created by ChemOrbis Price Wizard shows, the weekly average of local homo-PP prices in China have been offering a more competitive edge than imports since late February, which corresponds to the end of the Chinese New Year holiday. Data indicate that local homo-PP prices are currently traded around $45/ton below the import market, the largest discount since end-March.
The local homo-PP market has maintained its softening trend so far this week in the face of weak demand amid the low season. Despite a daily increase, PP futures on the Dalian Commodity Exchange fell by CNY152/ton ($24/ton) on the week as of May 29, also weighing on local sentiment.
A trader commented, “We think that futures prices have room for additional losses in the near term. Demand is not doing well while local homo-PP supplies are sufficient. In addition to these factors, the recent losses in crude oil futures will also keep local homo-PP prices on the soft side.”
When it comes to the import homo-PP market, prices have remained mostly stable this week as sellers preserved their firm stance mainly due to limited availability and strong propylene prices across the globe.
A major Saudi producer announced its June homo-PP raffia prices to China with $20/ton increases on a monthly basis. “The producer remains firm on its PP offers considering limited supplies,” an agent of the producer commented. A South Korean producer also lifted its import homo-PP raffia offers to China by $10/ton when compared to two weeks ago.
Another trader opined, “The prevailing import prices are deemed too high as local prices offer a more competitive edge. We think that the import PP market may face difficulties in sustaining its firmness in the near term given lack of support from demand while Chinese homo-PP offers might emerge at attractive levels in some export outlets in the near term.”
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Turkish polymer players sidelined prior to Sunday’s elections
- Initial reactions from Egyptian players to austerity measures
- PP sentiment softens on buyers’ resistance in Vietnam
- Spot propylene in Europe, US carries highest premium over ethylene in several years
- European PET players wait for supplies to improve amid record-high prices
- China’s PE market displays weak trend on increasing overseas supplies
- European sellers achieve propylene hike on PP deals in Germany, Italy
- July PVC offers to Asia revealed with hikes amid shutdowns
- Higher supply from US, Russia sends oil prices down further ahead of OPEC meeting
- China’s PP market set for a new wave of shutdowns for rest of 2018