Print

Amid a strong US dollar and dwindling confidence in the demand outlook, Chinese PP exporters have intensified price cuts mid-week in a bid to stimulate overseas sales. Current offers for homo-PP yarn now dip as low as $930/ton on an FOB China basis, marking one of the steepest reductions in recent weeks. 

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

Exports have underperformed over the past month, hindered by a range of challenges, including currency fluctuations and escalating shipping costs. “We were hoping for more decisive economic measures from the government to stimulate domestic consumption and stabilize the market as year-end approaches. That support isn’t coming,” noted one trader. The trader also expressed concern about China's expanding PP production capacity, which is expected to exert further downward pressure on market sentiment in the months ahead.

Chinese producers, however, have shown restraint in their pricing decisions, adjusting more conservatively to $955-960/ton FOB China. One industry source cited the appreciated greenback as a key factor driving this trend while cautioning that elevated shipping expenses erode much of the cost advantage of these revised offers.

As year-end holidays draw near, the window to attract international buyers may be narrowing. Southeast Asian customer now believed that Chinese sellers might be more willing to engage in negotiations, from which buying ideas started to emerge at $950/ton and lower, based on CIF terms.     

Written by: Kat Yun Yun

Edited by: Rochelle Nguyen

Country
China