This week, import PP Homo Raffia prices to China breakthrough a threshold level, while sharp changes for that grades were recorded for the Southeast Asia market. As SSESSMENTS.COM noted, the current import offers for PP Homo Raffia of Saudi origin are available in the China market at $900/ton on LC at sight, CIF China Main port basis, which is deemed quite high and no buyers are willing to take the cargoes, a trader commented. At the same time, rumour has it that another Middle Eastern supplier is offering PP Homo Raffia cargoes at $1,000/ton-level. A market player mentioned that high prices for PP Homo Raffia grade these days owe to the higher propylene prices. Besides, most producers have sold high volume of cargoes to the China market for May and June shipment.
Similarly, the leading Indian petrochemical producer is also keeping their offers firm to the China market due to the absence of sales pressure. On the other hand, one of the Chinese traders said that they are offering PP Homo Raffia of India origin on CIF basis at $20-30/ton higher compared to offers on EXW basis. Another local trader added that from March to May, there were many deals concluded for Indian PP cargoes in China. Even last week, some deals for PP Homo Raffia cargoes were concluded at $800/ton, hence, most Chinese buyers are cautious in taking other origin cargoes. Particularly for Middle Eastern PP Homo Raffia cargoes, the trader voiced out that the buyers’ acceptance level should be around $800-805/ton. All offers are on LC at sight. CIF China Main Port basis. Additionally, June shipment offers for PP Homo Raffia from a South Korean producer emerged in the China market at a stable level on a weekly comparison as supported by the higher local prices, SSESSMENTS.COM was told.
For the Southeast Asia market, a Vietnamese trader noticed that Saudi PP Homo Raffia offers increased by $20/ton on a weekly comparison. So far, some deals for Saudi PP cargoes in the Vietnam market were closed at and slightly lower than the initial offer levels. Meanwhile, import offers for PP Homo Raffia from one of the Thai PP producers surged to $940/ton on LC at sight, CIF Vietnam Main Port basis, which is around $70-75/ton higher on a fortnight comparison, according to SSESSMENTS.COM’s pricing database. The trader opined that no buyers would be interested in taking the cargoes since the prices are considered insanely high. However, the trader assumed that the high prices were merely the producer’s strategy to test the water; they usually offered at the highest level and then adjust down the offers again to meet market expectations.
Meanwhile, another Thai PP producer also offers PP Homo Raffia to the Vietnam market at $15/ton higher than last week’s level. The producer’s source explained that the upward adjustment was made on the back of lesser supply for PP Homo Raffia at the producer’s end. Responding to the offers, most Vietnamese buyers showed cold response because offers from other origins, such as South Korea are lower than the Thai producer’s offers. To date, no deals closed for Thai PP cargoes yet, SSESSMENTS.COM noted.
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