Saudi PP breaks below $1200/ton threshold in China
The trader reported receiving Saudi Arabian homo-PP raffia offers from two different suppliers at a range of $1210-1220/ton CIF China, cash while he also received an offer for PP raffia from a third Saudi supplier at $1170/ton CIF China, 90 days deferred payment basis.
A second trader who is offering Saudi Arabian homo-PP raffia and injection at $1180/ton CFR, cash commented, “We are not considering re-exporting our PP cargoes to Southeast Asia as demand is also quite stagnant there while the gap between homo-PP prices on a CFR China and CIF Southeast Asia basis is too small to justify redirecting our materials. We are struggling to conclude deals as most buyers are sidelined in order to obtain lower offers. Plus, conventional PP prices are facing stiff competition from coal based cargoes.”
Last week, Indian homo-PP prices reportedly broke below the $1200/ton CIF, cash threshold in China. A trader stated, “We received Indian homo-PP offers at $1180/ton CIF, cash this week. Sluggish demand and competitively priced coal based cargoes are maintaining pressure on China’s import PP market.”
In China, overall import homo-PP prices are currently reported at $1153-1225/ton for raffia and at $1180-1230/ton for injection, all on a CIF China, cash equivalent basis.
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