Chinese suppliers scaled back on export PP price reductions amid stabilizing local front

After aggressive price reductions in the prior week, Chinese PP suppliers have begun moderating their discount strategies for international buyers. This shift reflects a stabilizing domestic market, which has diminished sellers' willingness to concede to deeper price cuts. The latest export offers showed only marginal adjustments, with a modest $5/ton reduction largely confined to cargoes at the upper end of the price range.

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

The Chinese domestic spot market exhibited signs of recovery, buoyed by a stronger futures market. However, persistent concerns over an anticipated rise in supply during the next quarter continue to weigh on market sentiment. Still, sellers, already grappling with razor-thin profit margins, have little room to implement steeper price cuts at this juncture.

“We do not expect any strong rebound. However, we believe the market is nearing a floor. We are closely monitoring market responses to shape our short-term strategies,” commented a producer.

While Chinese exporters have benefited from the recent depreciation of the yuan against the US dollar, this advantage has been eroded by escalating shipping costs to key destinations. Adding to the pressure, international buyers are adopting aggressive negotiation tactics, anticipating that Chinese suppliers may ramp up export activity ahead of 2025. This expectation stems from potential US trade barriers that could restrict local consumption.

Written by: Kat Yun Yun

Edited by: Rochelle Nguyen