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A brief uptick in local trading activities last week was sufficient for Chinese suppliers to lift export PP offers, however, the rapid depreciation of the US dollar against the Yuan just further supported the motion, allowing sellers to introduce larger increases. 

Several Chinese suppliers commenced the new week by raising export PP offers by $15-20/ton, attributing the hikes to favorable currency exchange rates and the lack of inventory pressure. This strategic move follows last week's unexpected rebound in the Dalian Commodity Exchange, which drew buyers back to the market for replenishment and consequently lifted spot offers in the local Chinese market.

The overall price lists and changes from the previous week are as follows:

"The US dollar depreciated by 1.2% against the Yuan in just two trading days. The price hikes are necessary for us to cover the costs," stated a producer, who opened their price list at $985 per ton FOB China for homo-PP yarn, while acknowledging the tepid response from overseas buyers.

Despite the bullish factors supporting these increases, not all sellers were confident enough to firm up their offers. One producer opted to maintain prices from the previous week, setting them at $950-960 per ton FOB China for homo-PP. A source close to the producer cited stagnant demand and rising macroeconomic risks, along with the escalating threat of conflict in the Middle East, as factors discouraging buyers from building stocks.

Written by: Kat Yun Yun

Edited by: Rochelle Nguyen

Country
China