Import homo-PP below $1000/ton threshold disappears in China

After couple of slow trading session since late last week, Chinese players today reported unable to source any import cargoes for regular origin at below $1000/ton threshold as suppliers attempted to increase offers following the firming upstream costs.

A trader lifted Saudi Arabia’s homo-PP prices by $10-20/ton from yesterday, reaching $1010-1040/ton CFR China, LC 90 days term informed, “We think the shutdown at major Indian and Saudi producers might affect supply in the near term. Meanwhile, firming propylene costs also provide some support. Our customers are still reluctant towards the new offers; however, we believed that expected tightening supply would eventually give buyers more confidence to accept higher prices.”

Another trader offered Korean homo-PP at $1040/ton CFR China, LC AS term added, “This is the first time import homo-PP prices to China breached above the $1000/ton mark since July 2016 and we hope this trend would sustain in the near term. Our customers still prefer to source from local market due to competitive levels.

Indeed, mainstream PP prices in domestic China currently stand at CNY8100-8200/ton, EXW China, cash term ($‎1027-1040/ton without VAT), which is very similar to import prices. This means either import or local offers must be adjusted and players are looking at firmer local trend in days ahead.