- Following an uptrend in the domestic market, a China-based trader adjusted up local offers for this week. As compared to last week’s level, the trader initiated a price increase of CNY100/ton ($14/ton) for local PP Homo Raffia cargoes. SSESSMENTS.COM noted that the latest offers are available between CNY7,200-7,300/ton ($1,020-1,035/ton) on cash, EXW China basis and including 13% VAT. According to the trader, a number of factors have contributed to the uptrend in PP prices, including lesser supply in the market, news on expectations of a cut in oil output amid lower demand, and increasing demand for raw materials. On April 9, OPEC and other oil nations agreed to cut output by 10 million barrels per day, or about 10% from normal production levels, to support prices hammered by the COVID-19 crisis. For the import market, the trader is offering Middle Eastern PP Homo Raffia cargoes between $750-760/ton on LC at sight, CIF China Main Port basis.
- Similarly, a trader in China has adjusted up its local PP offers further. As compared to Wednesday’s level, the trader has announced a fresh price list with an increase of between CNY500-1,750/ton ($71-248/ton) for local PP Homo Raffia across different grades. The significant increase of CNY1,750/ton ($248/ton) was captured on PP Homo Raffia grade Z30S. Current PP Homo Raffia offers from the trader are available between CNY7,600-9,500/ton ($1,077-1,346/ton) on cash, EXW China basis and including 13% VAT.
