Chinese suppliers continued cutting export PP offers as weak demand persists

Several key Chinese PP producers have opened fresh weekly PP offers to the export market with additional decreases from the previous week as the latest round of export deals to the South American market failed to uplift the local sentiment.

The overall export offers from these suppliers and changes from the previous week are as follows:  

The local Chinese PP market remained lackluster at the start of the week, as industry participants expressed dissatisfaction with the outcomes of the Third Plenum meeting and the Central Bank's unexpected rate cut. These developments have further dampened purchasing activities, highlighting the fragility of market confidence.

A producer commented, "The lower offers, coupled with the depreciation of the Yuan, make the export market less attractive to us. Still, overseas customers showed very little interest in accepting our offers." This sentiment was underscored by the reduction of the homo-PP yarn price by $10/ton to $970/ton FOB China, a move that failed to stimulate significant buying interest.

In the broader Asian market, PP continues to face intense pressure due to comfortable supply, weak demand, and persistent shipping bottlenecks. These factors have led to an inventory buildup in key exporting countries such as China and South Korea. The previously noted increase in inquiries from South American buyers has not materialized this week, adding to the market's woes.

Written by: Kat Yun Yun 

Edited by: Rochelle Nguyen