Chinese PP producers maintained a firm stance on export PP offers amid strong Yuan

Chinese PP producers have maintained a firm stance on export prices this week, despite diminishing overseas demand and intensifying competition. The continued strength of the Yuan against the US dollar is exacerbating export challenges, preventing producers’ ability to deplete their stocks ahead of the weeklong National Day holiday.

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

Many Chinese producers remain largely absent from the export market due to fierce global competition and sluggish demand. Instead, their focus has shifted towards domestic sales and higher-value PP grades to preserve profit margins.

A PDH-based producer recently raised offers by $5/ton, citing exchange rate pressures. The producer noted that inquiries for BOPP have improved from the previous month, as such, there is little incentive to reduce prices, as marginal cuts are unlikely to stimulate overseas purchasing activity.

Other producers echoed similar concerns, expressing frustration over their inability to compete internationally, even as shipping costs have sharply declined. Despite these reduced logistical expenses, currency fluctuations and weak demand continue to undermine Chinese exporters' competitiveness in the global PP market.

Written by: Kat Yun Yun

Edited by: Rochelle Nguyen