Traders: PP producers cut prices to China, SEA
A Vietnamese trader stated that a Middle Eastern producer lowered their PP raffia and injection prices by $15-20/ton to $1445/ton CIF Vietnam, cash. He commented, “The producer is reluctant to give further decreases and we are planning to purchase a small quantity from them. However, we are still worried that prices may witness further declines in the coming term.”
A second trader based in Vietnam also reported receiving $15-20/ton decreases from the same Middle Eastern producer for PP raffia and injection. The trader stated, “The producer cut their PP offers to $1445/ton CIF, cash while we heard some PP deals concluded at $1435/ton with the same terms. Local demand remains stagnant as buyers are still waiting in anticipation of seeing lower levels and we are not feeling optimistic regarding the near term outlook.”
In China, a trader based in Ningbo reported that an Indian producer adjusted their PP offers downward to $1405/ton CFR, 30 days deferred payment. Last week, the same trader was offered PP raffia and injection from the producer at $1430/ton CFR, 90 days. The trader said, “In spite of the recent decreases, market activity remains disappointing as demand in China is still sluggish due to buyers’ ongoing wait-and-see attitudes. We expect to see further drops over the short term.” The trader added that they also received PP prices from a Middle Eastern producer at $1425-1435/ton for raffia and at $1460/ton for homo-PP injection, both on a CFR China, 90 days deferred payment basis.
Another Chinese trader based in Xiamen stated that they received homo-PP raffia and injection offers from an Indian producer at $1405/ton CFR, 30 days. He commented, “Buyers are not willing to make large-scale purchases with the expectation of seeing further decreases while sellers are disappointed by the number of deals they conclude nowadays. We are feeling uncertain about the upcoming period.”
In China, homo-PP prices currently stand at $1400-1480/ton for raffia and at $1440-1470/ton for injection grades, all on a CFR China, cash equivalent basis. In Southeast Asia, PP raffia prices are at $1440-1600/ton while injection prices stand at $1440-1470/ton, all on a CIF SEA, cash equivalent basis.
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