Price adjustment called for both local and import PP cargoes in China market as wary sentiment growing among players in the country. A trader informed SSESSMENTS.COM that local offers for BOPP and PP Homo Raffia dropped between CNY30-50/ton ($4-7/ton) from Tuesday’s level. A different movement captured in the import market. The trader received import offers for India origin PP Homo Raffia at $5/ton higher on the biweekly comparison. The trader also received PP Homo Raffia offers from a Saudi PP producer at $940-960/ton, which is new offers after a while. Nonetheless, trader pointed out that the deals for local and import cargoes are limited as China market becomes quiet following futures price drops. September 2020 PP futures on the Dalian Commodity Exchange slightly decreased by CNY6/ton ($0,8/ton) day on day, settling at CNY7,624/ton ($1,077/ton) by Wednesday settlement.
The trader shared with SSESSMENTS.COM that the correction period for PP prices should have happened between April to July following demand improvement. However, with the downstream market remains resistant towards high PP prices, coupled with space for price hedging is shrinking, producers could lose upward momentum in the second half of the year. As such, according to the trader, PP prices will meet round and round of adjustments in the near term; fluctuate within a limited range.
