A South Korean PP producer contacted by SSESSMENTS.COM informed regarding the latest export PP offers to the China market and talking about the sustainability of the current price trend. As informed by the producer, their offers for PP Block Copolymer and PP Random Copolymer Extrusion for July shipment have increased by $100/ton as compared to the offers for June shipment. Buyers’ were showing a lukewarm response towards the significant price increment. Some deals were concluded below the initial offer levels, however, the producer is unwilling to unveil the exact prices. At the moment, converters are in a cautious stance as the PP prices are on the uptrend, coupled with the traditional low season for end-products’ demand. Hence, converters prefer to keep the lean inventory level and procure on a hand-to-mouth basis.
Looking ahead, the producer believes that PP prices in China's local market will remain firm this week on the back of several reasons. “We are optimistic that PP prices in China’s spot market will remain firm as the local producers in the country have a relatively low inventory level at the moment. Besides, even though buyers are showing stiff resistance towards high prices, propylene prices are on the upswings. As such, foreign suppliers would maintain firm price quotes for July shipment,” as stated to SSESSMENTS.COM.
