As informed to SSESSMENTS.COM, this week, import PP Homo Raffia offers of Southeast Asia origin to China gain cold responses from buyers. In the domestic market, a producer sold out localized Vietnamese PP Homo Raffia cargoes last week at CNY7,200/ton ($1,016/ton) on TT, EXW China basis and including 13% VAT as supported by tight supply for spot cargoes. In the import market, Southeast Asian suppliers maintain firm offers for PP cargoes. Last week, a Malaysian polyolefins producer managed to sell 800 tons of PP Homo Raffia at $850/ton on LC at sight, CIF China Main Port basis. While on May 12, the producer announced June shipment offers to China with an increase of $40/ton for PP Homo Raffia offers as compared to May shipment. So far, responses from buyers remain cold as the offers deemed unattractive. Likewise, offers for Vietnamese PP Homo Raffia are available between $850-860/ton on LC at sight, CIF China Main Port basis. However, local traders opined that there will be no deals concluded at such a level as most buyers are taking a wait-and-see approach amid the volatile crude oil and futures prices.
As reported, buying sentiment in China market dampens coming into this week owing to the decline in futures prices since the beginning of the week. September 2020 PP prices in the Dalian Commodity Exchange decreased by CNY260/ton ($37/ton) week on week, settling at CNY6,855/ton ($967/ton) by Wednesday (May 13) settlement. Due to this, the PP market in China is quiet as buyers prefer to wait on the sidelines or only make procurements on a need basis. As such, no buyer is interested in taking PP cargoes of Southeast Asia origin. However, market players opined to SSESSMENTS.COM that import PP offers, including Southeast Asia origin will remain firm, following propylene price movements.
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