As contacted by SSESSMENTS.COM’s team, a Chinese trader underlined a notable gap between import PE PP offers and buyers’ acceptance levels. On July 15, the trader reported on receiving August shipment offers for PP Homo Raffia from a South Korean producer at $985/ton on LC at sight, CIF China Main Port basis. Afterwards, the trader attempted to offer the cargoes to their customers at $15/ton higher than the offer received, or at $1,000/ton on the same payment and delivery terms. Unfortunately, the trader’s offer levels were unsuitable with the customers’ buy idea; which is only at $950/ton-level for South Korean PP cargoes. In the end, the trader decided to shrug off the offers.
Recently, the trader heard about the rumour spreading in the market that non-popular PP Homo Raffia grade from a Saudi producer offered at $910/ton-level. Taking into account the low price levels, SSESSMENTS.COM was told that most Chinese buyers are using the offers as a reference to bargain with sellers. However, the suppliers themselves are unable to trim the offers or sell their cargoes at low prices on the back of the firm propylene prices coupled with low inventory level on their end.
For PE, the trader is offering LLDPE Film C4 of US origin at $870-880/ton on LC at sight, CIF China Main Port basis. Again, the offers received an unfavourable response from buyers as it was deemed too high, the trader further added to SSESSMENTS.COM.
