Chinese producers hold firm on export PP offers amid steady local market

Key Chinese PP producers are steadfast in maintaining firm export offers this week, citing manageable inventory levels and a stable domestic market. Despite lackluster responses from overseas buyers, Chinese sellers show little inclination to adjust their pricing strategies.

The latest price range and changes week-on-week are as follows:

The local Chinese market, while not experiencing significant improvement in buying activity, continues to see consistent small-scale purchases from buyers looking to cover immediate needs. Notably, an uptick in forward-buying for October deliveries has allowed Chinese sellers to offload a substantial number of cargoes, thereby supporting their export position.

“Our offers are at the higher end of the market, and overseas customers are reluctant to accept these levels. However, we do not face significant pressure to reduce prices as we have been steadily depleting stocks locally,” commented a producer. The supplier increased its export homo-PP yarn offer by $10/ton to $980/ton FOB China, despite tepid interest from international buyers.

Meanwhile, some Chinese suppliers have opted out of the export market altogether, citing weak overseas demand and a strategic shift towards focusing on local sales in the near term.

Written by: Kat Yun Yun

Edited by: Rochelle Nguyen