PP sellers taking firmer stance on prices in China
According to data from ChemOrbis Price Index, domestic homo-PP prices on an ex-warehouse China basis have declined for the past ten consecutive weeks, losing a total of more than $220/ton while import prices on a CFR China basis have decreased for the past five consecutive weeks, falling by a cumulative amount of more than $100/ton. On the Dalian Commodity Exchange, January PP futures have risen by CNY81/ton ($12/ton) since the end of the previous week.
A trader reported receiving an offer for domestic raffia at CNY6500/ton ex-warehouse China, cash inc VAT ($868/ton without VAT) commenting, “Our supplier lifted their prices by CNY300/ton ($46/ton) compared with the start of the week based on rising futures prices. However, we believe that these increases will not prove sustainable as demand remains discouraging.” Another trader offering Chinese raffia at CNY6150-6250/ton with the same terms ($821-835/ton without VAT) stated, “Demand remains limited, but we still feel that the market is due to stabilize soon following an extended period of price weakness.”
A source from a domestic producer, who reported concluding some deals from PP block copolymer at CNY7700/ton ($1029/ton without VAT), reported, “Local suppliers are beginning to take a firmer stance on their prices these days while we are seeing steady orders from our customers. We have already sold out our monthly allocation for homo-PP and currently only have some PP copolymer to sell.”
Domestic homo-PP injection and raffia prices currently stand at CNY6120-6950/ton ex-warehouse China, cash equivalent basis inc VAT ($817-928/ton without VAT).
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