Players: PP prices edge higher in China

Players in China market are reporting of higher PP prices in both local and import market today despite limited buying interest. Local PP continues to advance CNY100/t ($15/t) while the lower range of import PP at $800/t level has technically disappear from the market by now. 

A trader in Ningbo said, “Continuous firming prices on Dalian futures platform has supported the spot PP market these recent weeks. We see that local suppliers are reducing the offer quantity to the market by now while buying interest from converter is dwindling. Most of our customers who made purchase this week are local traders. We are very uncertain about the outlook after the holidays, hence we prefer to maintain conservative stances.”    

Import PP prices to China are reported to be $10-20/t higher than last week and overseas suppliers are claiming to have limited supply in hand. A trader in Shanghai said, “Our Middle East supplier has withdrawn their offers at $830/t CFR China today citing that they have sold out the available quantity. We ourselves are free from sales pressure as we are having minimal stock in hand. We think that there will be very limited activities toward the end of this week as most transportation companies are about to go off for the holidays.”

The market is now concerned about the outlook after Chinese New Year holidays with some are questioning the sustainability of the current firming trend. “We expect the local inventory to pile up after the holidays while converters will only return to market after the Chap Goh Mei celebration. We are trying to gauge the post-holiday state of demand to make our adjustment, however, we are not very confident about the probability of buyer will make immediate replenishment after the holidays.”

Import homo-PP to China currently stands at $800-920/t CFR China, LC 0-90 days term.

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