Market sources notified SSESSMENTS.COM regarding the shift in import PP price trend to China and Vietnam market. A Chinese trader stated that the company received PP Homo Injection and PP Homo Raffia offers of Vietnam origin at $820/ton and $810/ton respectively on LC at sight, CFR China Main Port basis, an increased of more than $30/ton over a week. The trader explained that foreign traders are taking advantage of the momentum as local PP prices in China have generally increased between CNY200-300/ton ($28-42/ton) compared to last Friday’s level.
Another trader in China informed SSESSMENTS.COM that the offers for Indian PP Homo Raffia increased significantly between $50-60/ton from last week. Market talks have it that the offers for Indian PP Homo Raffia are available at $740/ton on LC at sight, CIF China Main Port basis. Buyers were submitting bids at $20/ton lower from the initial offer level, but rejected by the supplier.
Similarly, despite the Vietnam market is muted as many converters already halted production following a 15-day period of isolation nationwide that started on April 1 and with possible full lockdown to be imposed soon, some sellers still attempted to offer PP cargoes at a higher level. A trader revealed to SSESSMENTS.COM that the company received offers for Indian PP Homo Raffia cargoes with an increase of $20/ton from last week due to some rebound in crude oil prices. Likewise, a second source also stated that offers for Chinese PP Homo Raffia cargoes up by $20/ton.
Looking ahead, several traders in China expressed opinion to SSESSMENTS.COM that the current uptrend for import PP prices to China will be short-lived owing to high inventory in the domestic market. While in Vietnam, a trader predicts that market conditions will remain bearish for the next two or three weeks and PP prices will most likely remain stable at the current level.
