Chinese PP exports extended the weakening trend amid cautious buyer sentiment

Export offers for Chinese-produced homo-PP weakened further this week, reflecting a sluggish energy market, tepid global demand, and pervasive buyer caution as markets brace for pivotal political and economic events in November.

The latest export offers and changes from the previous price announcement are as follows:

However, the downward adjustments remained minor. The steady need-based purchases at home coupled with reduced plant utilization rates helped to keep any excessive inventory pressure in check at the moment.

The price adjustments, while downward, have been moderate thus far, supported by steady domestic demand and strategically reduced plant utilization rates, which have helped prevent excessive inventory buildup. According to a PDH-based producer, “We anticipated a boost in local sentiment ahead of the 14th National People’s Congress, which we hoped might stabilize the market. However, overseas buyers remain highly cost-sensitive, and we have been unable to meet many of the bid prices in this environment.”

Looking ahead, November presents potential volatility for the Asian PP market, with major factors including the US presidential election, China’s National People’s Congress, the Federal Reserve’s impending interest rate decision, and ongoing tensions in the Middle East. These events could disrupt market stability and significantly influence the sector’s outlook for the coming months.

Written by: Kat Yun Yun

Edited by: Rochelle Nguyen