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Availability constraints in Southeast Asia have tempered weeks of market decline, bolstering Chinese exporters' confidence to keep PP export offers steady this week. This favourable condition has brought a sigh of relief to a sector where rising freight costs and a loosening domestic supply outlook have weighed heavily on the sentiment.

The latest price range and changes week-on-week are as follows:

Export activity has surged, with overseas purchasers turning to Chinese cargoes following a series of production disruptions. Philippine and Thai converters have driven a substantial portion of this demand. “Since late last week, we successfully closed several deals with large-scale converters for homo-PP yarn at $965/ton CIF Philippines,” one seller noted. “In Thailand, offers have reached as high as $990/ton CIF,” they added, “though we are closely monitoring whether this trend will hold.”

However, not all PP offers have received equal support. Homo-PP yarn at the lower end of the price range ($940-945/ton FOB China) has been better received than higher-end offers. 

Chinese exporters are expected to continue seizing the current window of opportunity to offload more inventories ahead of the scheduled startups at new domestic plants. There have also been concerns that Southeast Asian buyers might slow down purchases once they complete replenishment to avoid increased currency exchange rates.

Written by: Kat Yun Yun

Edited by: Derek Yong Zher

Country
China