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Key Chinese PP suppliers have continued to reduce export PP offers this week, responding to persistently sluggish demand both domestically and internationally. Buyers are adopting a cautious approach as they closely monitor significant political and economic developments this month.

The latest export offers and changes from the previous price announcement are as follows:

The decision to lower export prices comes as a surprise, especially given that these producers had previously asserted that there was no real inventory pressure. Compounding this situation is the recent appreciation of the Yuan, which strengthened to 7.09 against the US dollar on November 4, up from 7.13 the previous week. Under normal circumstances, this would suggest a potential increase in export offers in USD terms.

“We believe the impending startup of several new PP plants weighs on an already jittery market. Participants are becoming increasingly cautious, opting to delay new purchases until there is greater clarity on market direction,” remarked a market source.

As previously reported by CommoPlast, eight new PP units in China are set to commence operations between November 2024 and 2025, with a combined annual output of 5.45 million tons. While some facilities were originally scheduled to begin production by the end of 2024, industry insiders indicate that minor delays may occur. However, all plants are expected to be fully operational by 2025, further intensifying competitive pressures in the market.

Written by: Kat Yun Yun

Edited by: Rochelle Nguyen

Country
China