Chinese market participants informed SSESSMENTS.COM that PP Homo Fiber market in the country starts to cool down. Demand for PP Homo Fiber has been skyrocketing due to the spike in demand for face masks amid the Coronavirus pandemic. In response to the situation, the number of mask producers in China has been rapidly growing as demand in the local and export market soared up. Market sources in China informed that there are about 37,000 new converters that entered the mask industry this year. In China local market, PP Homo Fiber prices were hiked from between CNY10,000-20,000/ton ($1,418-2,836/ton) at the beginning of the week, to CNY25,000/ton ($3,545/ton) on April 14. Market talks have it that some sellers jack up the prices to CNY50,000/ton ($7,090/ton)-level and as high as CNY88,000/ton ($12,479/ton). Rumours even have it that the materials were sold at CNY60,000/ton ($8,508/ton). All offers on cash, EXW China basis and including 13% VAT.
As the market is out of control, the Chinese government decided to intervene and clamp down the sellers that jack up the price in bad faith. As of April 15, a Chinese trader informed SSESSMENTS.COM that these ridiculously high prices for PP Homo Fiber have disappeared in the market and the price range has fallen back to between CNY10,000-15,000/ton ($1,418-2,127/ton) level on cash, EXW China basis and including 13% VAT.
In other markets, the leading Indonesian polyolefins producer implemented an upward price adjustment on April 15, but only for PP Homo Fiber grade. Compared to the price list announced on April 13, PP Homo Fiber prices increased by IDR2,500,000/ton ($159/ton) on the back of strong demand. In Pakistan, the deals for import PP Homo Fiber of Saudi origin were achieved at $920/ton on LC at sight, CFR Karachi port basis. SSESSMENTS.COM was told that this level is $80/ton higher than last week’s level.
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