Surging propylene pulls PP prices higher in China, SEA
This fact, along with supply concerns recently exacerbated by lower run rates, shutdowns at PP plants as well as the transportation ban ahead of the G20 Summit, has pulled the import PP market level up slightly in China. The overall homo-PP price range was reported at $965-1050/ton CIF China, cash, making a weekly increase of $15-30/ton. However, players generally concur that this firming is mostly driven by costs and supply, rather than a real improvement in fundamental demand.
Similarly, the Southeast Asian PP market was reported $10-25/ton higher this week at $1000-1140/ton CIF, cash. No offer was left below the $1000/ton threshold, although players remain quite cautious and acknowledge that this firming lacks support from demand. Several traders said that they still received bids at $980-990/ton due to thin buying interest, but they could not accept them given the surging propylene costs.
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