A South Korean producer revealed to SSESSMENTS.COM that the company adjusted PP offers to China as manifold factors provide support. Compared to two weeks ago, June shipment offers for PP Block Copolymer from the producer increased by $50/ton. The producer is firm on the offers because the availability of cargoes is not high. The producer also considers that demand from Chinese re-exporters improves notably due to the eased lockdown and business reopening in other countries.
The current high import PP offers in China are supported by firm local PP prices, SSESSMENTS.COM was told. The producer explained that higher crude oil and propylene prices as well as low inventory level of local producers led to firm local prices and prevented the prices from falling due to pressure from the arrival of import cargoes previously purchased at lower levels. However, the producer opined that chances for PP prices in China to move higher in the near future is thin. The producer believes that PP prices will just hover at the current levels as converters need time to absorb cargoes in the market.
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