Chinese PP export offers remain steady despite weak local sentiment
At least three Chinese PP producers have maintained their export offers at unchanged levels compared to previous weeks, despite persistently sluggish local trading sentiment and a significant lack of competitiveness in the international market.
At least three Chinese PP producers have maintained their export offers at unchanged levels compared to previous weeks, despite persistently sluggish local trading sentiment and a significant lack of competitiveness in the international market. The decision is primarily driven by firm upstream costs and the absence of sales pressure.
The overall offers from these suppliers are as follows:
|
Grade |
Price (USD/ton) |
Changes |
Terms |
|
Combined and reported by CommoPlast |
|||
|
PPH Yarn |
$975 – 980 |
Stable |
FOB China, LC AS |
|
PPH Inj |
$985 |
Stable |
FOB China, LC AS |
|
BOPP |
$975 – 985 |
Stable |
FOB China, LC AS |
|
PPBC Inj |
$1000 |
Stable |
FOB China, LC AS |
These producers reported one common development –poor feedback from overseas customers. Due to the strong shipping costs and the reluctance to offer steeper discounts, Chinese PP has been losing attractiveness in a key importing region – Southeast Asia. In fact, Vietnamese customers have secured South Korean homo-PP this week at $970/ton for yarn and $960/ton for injection, all based on CIF terms.
"The local market is soft, but prices are not decreasing rapidly enough to warrant steep adjustments in export offers. Additionally, our inventory levels are manageable at present," one producer remarked.
Written by: Kat Yun Yun
Edited by: Rochelle Nguyen