Is Asia PP market nearing the bottom?
Is Asia PP market nearing the bottom?

Most regional buyers responded to this question saying “yes”.
Import homo-PP prices to Asia has been following the soft trend for four consecutive weeks starting late July due to sluggish buying interest and surge in supply. However, the traditional high demand season is drawing near, trigger market expectation for better trading condition as soon as in September.
Buyer’s confidence becomes solidified after propylene costs surged $35/ton on Thursday on constraint supply stemming from a series of plant shutdown. In addition to the bullish energy market and the preparation for year-end season, purchasing activities across the region pick up notably.
A Chinese trader claimed to have sold a good quantity of Saudi Arabia homo-PP yarn at 960/ton CFR China, LC 90 days term said, “We cut our offers by $10-20/ton from earlier this week as the previous price levels were not very attractive. Our customers appear to just wait for the discount to come, and indeed we manage to sell a good quantity after the reduction, mostly to converters.” Chinese players generally expect a brighter market outlook for September as this is a short trading month due to the G20 Summit, and buyers might need to replenish material before the National Day in early October.
In Vietnam, Middle Eastern homo-PP cargoes at the price range of $970-990/ton CIF Vietnam, LC AS term, have mostly been sold out. Sellers for these origins claimed depleted all available quantity while more buyers continue sending in purchase inquiries, especially for yarn grade. A household product converter in the country informed, “We think market has found its bottom levels, yet drastic price increment might still lack of support. We have purchased some quantity at $970/ton earlier this week and we couldn’t find this price anymore now. Our end product business starts to pick up. Indeed, we receive more orders and can move some stock this week. We expect a better September head.”
Players in Indonesia are still trying to negotiate for lower prices though general thought is that room for further reduction is rather small. Some buyers decided to proceed with purchases due to running low on inventories levels. A buyer placed bid for Singaporean homo-PP at $1050/ton CIF Indonesia, LC AS term said, “We would buy in large quantity if our supplier accept the bid. We think the bottom is near, hence we plan not to wait for too long before taking position.”
Import homo-PP to China at the moment stand at $950-1040/ton CFR China, LC 0-90 days term, to Vietnam at $970-1020/ton CIF Vietnam, LC AS term and to Indonesia at $980-1150/ton CIF Indonesia, LC AS term