Will re-export PP from China continue to find a home in SEA?
Although prices in China are now gaining ground and oversupply worries are fading, traders in China are still offering re-export cargoes to the Southeast Asian market. “Re-export business to Southeast Asia is still going on, but we are concerned that demand from Southeast Asian buyers may soften in the weeks ahead as the volume of re-exported goods from China will begin to lessen availability problems in the Southeast Asian region,” a Chinese trader stated. Another trader added, “Re-export activities to Southeast Asia for the past few weeks have helped sellers pare down their excess stocks, but we are concerned that Southeast Asia is nearing a saturation point and that future re-export deals may become more difficult.”
Chinese traders are currently offering re-export homo-PP cargoes at $1280-1300/ton FOB China, cash, which could potentially be offered to SEA at around $1300-1330/ton CIF. These prices would be within the current import offer range of $1260-1360/ton CIF SEA, indicating that while re-export deals from China remain feasible, prices for Chinese re-exports are no longer quite as attractive for Southeast Asian buyers as has been the case over the past few weeks.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- December hints at further hikes in Europe’s PS, ABS markets
- Global polymer markets face soaring freights amid pent-up demand
- RCEP to boost Asia-Pacific polymer trade; will global PP, PE trade flows change?
- PVC sellers’ India pricing strategy may differ from other Asian markets
- More US PE offers find way to China, SE Asia; yet allocations still limited
- European PVC market hits 2-year high on tightness
- Supply constraints send key ABS markets to new highs
- Tightness leads to renewed PP hikes in China; Saudi raffia moves above $1000 CIF
- Asian PVC players brace for 7th straight monthly hike in Taiwanese major’s delayed Dec offers
- Saudi major seeks hikes for November in global PE, PP markets