- Far East Asia origin $860/ton
- Indian Subcontinent origin $835-860/ton
- Middle East origin $830-900/ton
Comments by market players on PP Homo Raffia as follows:
“We just announced June shipment offers to the China market this week. Particularly for PP Homo Raffia cargoes, we are offering at a stable level from last week at $860/ton on LC at sight, CFR China Main Port basis. We decided to maintain the offers stable because the market sentiment in China is getting better lately as supported by firmer local prices. In terms of sales, we almost sold out all of June allocations but the prices are confidential,” a South Korean producer reported on May 25.
“Recently, we noticed that import PP Homo Raffia cargoes of Saudi origin is already touching a new threshold level, at $900/ton on LC at sight, CIF China Main Port basis,” a Chinese trader told SSESSMENTS.COM.
“This week, market talks have it that PP Homo Raffia cargoes of a Middle Eastern producer are available at $900/ton on LC at sight, CIF China Main Port basis. Likewise, rumour has it that another Middle Eastern supplier is offering at $1,000/ton on the same payment and delivery terms. These high prices are probably triggered by the higher propylene prices and the absence of sales pressure from the producers’ end since many of them already sold a lot of cargoes to the China market for May and June shipment. From our side, we are also keeping our prices firm since we have no sales pressure as well,” the leading Indian petrochemical producer commented.
A Chinese trader contacted by SSESSMENTS.COM revealed, “We have received offers for PP Homo Raffia from the leading Indian petrochemical producer at $860/ton on LC at sight, CIF China Main Port basis, or $60/ton higher than last week’s level. We assumed that now demand in India is quite good owing to lockdown relaxations, and most businesses have started to reopen. As such, the Indian producer will likely focus on the local market. We also think that no buyers would be willing to take the Indian producer’s cargoes considering the high prices.”
“During March to May, there were lots of deals concluded for Indian PP Homo Raffia cargoes. Even last week, market talks have it that deals for Indian PP Homo Raffia cargoes were closed at $800/ton on LC at sight, CIF China Main Port basis. Due to this, most converters and traders are more cautious in taking other origin cargoes, such as Middle Eastern cargoes offered at $850/ton on the same payment and delivery term. Such a level is quite high as buyers’ acceptance level is only around $800-805/ton,” a China-based trader informed SSESSMENTS.COM.
A global trading house reported on May 28, “June shipment offers from a United Arab Emirates producer have emerged in the China market. For PP Homo Raffia, the latest offer stands at $830/ton on LC at sight, CIF China Main Port basis, or $60/ton higher than last month’s level.”
“This week, Middle Eastern PP Homo Raffia cargoes surfaced in the China market with an increment of $20/ton on a weekly comparison. The number of inquiries for PP received this week are quite scarce as most converters had replenished their stocks beforehand,” said another Chinese trader to SSESSMENTS.COM.
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