PP markets in China, Vietnam hit 3-year lows, readying to test new lows
Now that China’s long-heralded recovery has failed to materialize and supplies continue to grow domestically, the recent slump below the $900/ton threshold for homo PP raffia is well justified, according to players.
ChemOrbis Production News Pro suggests that there will be 2 million tons of new PP capacities scheduled for May, if not delayed, on top of the already commissioned capacities of 1.8 million so far this year.
Needless to say, these relentless capacity additions contribute to the mounting stock pressure inside the domestic market, where the weekly average prices also have reached their lowest since May 2020, based on ChemOrbis Price Index.
China’s local and import markets trade almost at par
As can be seen from the Price Wizard Graph below, the USD equivalence of weekly average prices for local PP raffia, when VAT is excluded, almost matches the import price average in China. Therefore, buying interest remains quite dull for imports, with buyers preferring to meet their already restricted needs from the local market amid economic woes.
Vietnam PP market continues to feel the brunt of aggressive China exports
Vietnam is sure to have the Chinese PP at quite competitive prices given its proximity. This week, Chinese PP is offered at $930/ton CIF, marking the lowest levels seen in the last three years at the time of press, as is the case in the rest of the markets.
A trader based in Ha Noi said, “We have only received PP offers for Chinese origin this week. It seems other origins cannot compete much in Vietnam.”
There is little hope for a demand recovery over the short term among players. Thus, this makes Southeast Asian buyers wait for further slide in prices.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Türkiye’s polymer markets in flux amid bullish costs, lackluster demand
- China’s import PE prices resume uptrend on ongoing cost support
- Liquidity concerns keep India’s PP, PE markets on edge
- Buyer resistance counterbalances cost pressure in China’s PE markets
- Türkiye’s PE market up in Sept as limited quotas offset muted demand
- Crude oil rally keeps China’s PP markets firm
- Europe’s PVC rebounds from nearly 3-year lows, is it a dead-cat bounce?
- Indian players see PVC prices falling further ahead
- Stats: US boosts HDPE market share in China, Saudi's sales slump sharply
- Stats: India's H1 PP imports jump, PE and PVC imports skyrocket