Chinese homo-PP export prices remain steady amid balanced market dynamics

Chinese homo-PP export prices remained largely stable this week, as reduced inventory pressures counterbalanced the impact of subdued overseas demand. Most Chinese producers maintained their export offers at similar levels to the previous week, with only a slight decrease of $5/ton for homo-PP yarn. The decision was primarily attributed to eased inventory burdens rather than a significant shift in market sentiment.

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

From a supply perspective, availability across Southeast Asia remains constrained due to ongoing production disruptions at key regional facilities. Meanwhile, in China, major domestic producers Sinopec and CNPC successfully reduced their combined stockpile to 610,000 tons as of December 6, reflecting a 14% decline, or 100,000 tons, from the beginning of the week.

"Domestic demand has remained stable, driven by need-based purchases," commented one producer. "As a result, we see no compelling reason to lower export offers." This producer raised their export homo-PP price by $10/ton, reaching $960/ton on FOB China terms.

While some market participants remain cautious, citing lukewarm international demand, there is optimism about the potential for a demand uptick in the lead-up to the Lunar New Year. Industry insiders suggest that export prices have likely established a floor for now, with any future adjustments expected to occur at the higher end of the current price range.

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Written by: Kat Yun Yun

Edited by: Rochelle Nguyen