Mid-Eastern PP raffia hits $1200 CIF China for first time since May

Import PP prices in China headed north last week after almost a three-month of stability. The upturn has gained momentum this week amid low availability and surging futures, with Middle Eastern homo-PP raffia and injection offers hitting the $1200/ton CIF threshold for the first time since May.

Traders offered Mid-Eastern raffia at $1200-1210/ton CIF, cash, up around $50-70/ton from last week.

Import PPBC injection prices for Middle Eastern origins have also witnessed hefty hikes from last week to hit the $1230-1250/ton CIF, cash levels, meanwhile.

Players mostly attributed the recent hikes in import prices to limited availability as overseas suppliers continue to focus on other export outlets where they still can enjoy better netbacks.

“The market is well supported by the cost side amid rising crude oil futures. Higher local prices as a result of surging Dalian futures have also lifted sentiment in the import market. Demand has slightly improved due to the peak season. Buyers are willing to replenish their stocks ahead of the National Day holiday,” a trader explained.

Regarding the upcoming capacities inside China, players said, “The implementation of the energy consumption curbs has forced many PP producers to reduce operating rates or shut their plant temporarily, which might offset the upcoming capacities.”