PP sellers turn to outlets other than China amid low netbacks
An agent of a Saudi producer concluded PPBC injection deals in Malaysia for August, saying, “Our done deal level is around $120/ton above the prevailing deal levels in China. Other Middle Eastern and Indian producers allocate only limited quotas to China this month as they focus on other markets where better netbacks are obtainable. Therefore, we think that China’s PP market will face supply limitations in August and September, which may support the current firming trend in prices.”
According to data from ChemOrbis Price Index, Southeast Asia’s PPBC injection market is currently carrying a premium of around $115/ton over China on a weekly average basis.
A South Korean producer said, “We have been mostly selling to Southeast Asian markets since the beginning of July as demand from China has been quite slow, particularly for PP copolymers, given buyers’ resistance towards our firming offer levels.”
Meanwhile, a source from an Indian producer also commented, “We withdrew our PP offers to China and Southeast Asia as demand has started to improve in our domestic market recently in line with the approaching end of the monsoon season. We believe that we will be able to conclude deals with better margins in the local market this month.”
Data from ChemOrbis Import Statistics revealed that China’s PP copolymer imports were down by 6.6% on the month and 16% on the year in June to reach around 85,000 tons. As for homo-PP, the country’s imports retreated by 5.7% on a yearly basis to around 230,000 tons in spite of a monthly gain of 2.2%.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
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