US PP falls further in China

Offers for American homo-PP fell further this week in China’s import market following their emergence at competitive prices last week. They are reported at $980-1000/ton CIF China, cash, implying a weekly decrease of $40-45/ton and standing on the low end of the overall import range.

However, buying interest for these cargoes remains limited, according to traders, despite the large decrease. This is because buyers are not willing to secure cargoes with long transit times given the uncertainty of the market trend.

“These cargoes will arrive in February and they can even be delayed to March. We do not know what the market will unveil by then,” said a Chinese distributor.

A trader also commented, “American producers are still suffering from high PP inventories ahead of the year end. In an attempt to deplete their stocks by late December, they are approaching their export destinations with attractive offers.”