- Central Asia origin $860-870/ton
- Middle East origin $900/ton
- Southeast Asia origin $940/ton
Comments by market players on PP Homo Raffia as follows:
“As of Monday, June 8, September 2020 polypropylene (PP) prices on the Dalian Commodity Exchange settled at CNY7,350/ton ($1,037/ton), posting a reduction of CNY25/ton ($3.5/ton) from last Friday’s settlement. Despite a reduction in the futures market, we maintained a stable offer level for local PP Homo Raffia cargoes as compared to last week’s level as the market direction remains hazy in the first trading day of the week, and there have been no strong factors to stimulate the market. The latest offers are available at CNY7,800/ton ($1,101/ton) on cash, EXW China basis and including 13% VAT. At the moment, most traders prefer to adopt a wait-and-see stance before taking the next decision,” a Chinese trader based in Xiamen revealed to SSESSMENTS.COM.
“In response to the downtrend in the domestic market, we initiated a price reduction of CNY100/ton ($14/ton) for local PP Homo Raffia cargoes from last week, ranging between CNY7,650-7,850/ton ($1,080-1,108/ton) on cash, EXW China basis and including 13% VAT. In the East China market, local offers above CNY8,000/ton-level are no longer available, unless for special grades. From the import market, we received import offers for Russian PP Homo Raffia cargoes between $860-870/ton on LC at sight, CIF China Main Port basis. However, our company is reluctant to take the cargoes as the offer level is considered too high,” a local trader in China informed SSESSMENTS.COM on Tuesday, June 9.
“From the import market, our company received import PP Homo Raffia offers from a Saudi producer and the leading Indian petrochemical producer this week. Both producers maintained their high price quotes over the week. On a weekly comparison, the Saudi producer applied a price increase of $30/ton on PP Homo Raffia grades, available at $900/ton on LC at sight, CIF China Main Port basis. While the leading Indian petrochemical producer made the decision to adjust up their offer by $40/ton as compared to a fortnight ago, captured at $900/ton with the same payment and delivery terms. However, buying sentiment in China is not as good as last week; some customers have shrugged off import offers as it deemed too high and unworkable,” a China-based trader informed.
“As for Southeast Asia origin, the leading Malaysian polyolefins producer has announced July shipment offers to the China market this week. As compared to the June shipment, the producer initiated a price increase of between $60-80/ton for PP Homo Raffia cargoes. The latest offers are available at $940/ton on LC at sight, CIF China Main Port basis. However, overall buying sentiment remains sluggish over the week. Considering the current market situation, most customers are anticipating a greater fall in prices,” a source close to the producer mentioned on June 9.
“Demand-wise, China is still trying to dig itself out from the economic shock of weeks-long shutdowns. Despite the Coronavirus outbreak has been resolved, the tourism sector and some foreign trading sectors is still battered by its impact. However, the pandemic has generated an enormous demand shock for health care systems and medical supplies, which is becoming the main contributor to the highest demand for PP resins. Other than that, demand for essential products such as food packaging also remains healthy. In general, Chinese PP market players are still adopting a wait-and-see approach as the economy has not fully recovered from the downturn,” another China-based trader commented.
“Crude oil prices fell by more than 8% on Thursday, posting their largest one-day loss since late April in response to evidence of climbing cases of coronavirus, Wednesday downbeat economic outlook by the Fed, and a weekly climb in US inventories. As a result, September 2020 PP prices on the Dalian Commodity Exchange showed decreases today. Following a reduction in the futures market, we adjusted down local PP Homo Raffia cargoes by CNY50-100/ton ($7-14/ton) from Thursday’s level. The latest offers from our company’s end are available in the market between CNY7,850-8,050/ton ($1,108-1,136/ton) on cash, EXW China basis and including 13% VAT. As today is the last trading day of this week, most buyers prefer to stay on the sidelines to monitor the market and are reluctant to take the cargoes,” a Chinese trader reported on June 12.
