A Chinese trader reported to SSESSMENTS.COM that South Korean PP prices are adjusted down drastically as the suppliers are aggressively selling overseas. This week, import offers for PP Homo Injection and PP Homo Raffia of South Korea origin dropped between $50-70/ton from last month’s level. The South Korean suppliers are aggressively selling their cargoes overseas as demand in the domestic market is weakening amid fast-spreading Coronavirus outbreak in the country. From the trader’s end, the offers for both South Korean PP cargoes are available between $950-960/ton on LC at sight, CIF China Main Port basis, or $10-20/ton higher than the direct offers from the producer. So far, buyers remain uninterested in taking the cargoes as most of them are already booked some volume and their purchased cargoes have just arrived in the port recently.
In the days to come, the trader opined to SSESSMENTS.COM that the PP prices would move further down in April owing to the expanding area of Coronavirus spreads, which is not only in Asian countries, but also in the Middle East, Europe, and the US. As in general, the phenomenon will affect the buying sentiment in the global market. In the bright side, the trader hopes that warm weather that predicted to come in April onwards would curb the spread of the virus, and China market will improve significantly.
