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Several traders have attempted to increase import homo-PP prices to China as much as $30/ton on the first trading day of the week, and in fact, prices below $1050/ton threshold are becoming very scarce. 

A trader offers homo-PP at $1080/ton for Saudi Arabia origin and $1090/ton for Indian origin, all based on CFR China, TT in advance term. The source added, “Market respond towards our new offers levels are not very positive as buyers are reporting of more competitive domestic cargoes. We are in no rush to cut prices since these parcels are due to arrive the market very soon.”

Another trader sold Saudi Arabia’s homo-PP yarn at $1050-1060/ton with the same term added, “Buyers have accepted this price after seeing futures market rally today. We think the sentiment in the PP market would remain strong in the near term despite falling propylene costs.” 

Propylene (C3) costs based on FOB Korea term, indeed, have dropped $85/ton since its peak in mid-October 2016 due to improved supply condition. Market participants in China have totally ignored this element claiming limited supply for PP and healthy down stream demand to be the main trend drivers.

Import homo-PP to China at the moment stand at $1050-1090/ton CFR China, LC 0-90 days term.