Import homo-PP cargoes to China breached below $900/ton threshold

Market players reported seeing import homo-PP from dutiable origins to China breached below the $900/ton threshold today, after almost two weeks of constantly following stable trend.

A trader received offer for Middle East homo-PP, prime grade at $880/ton CFR China, LC 60 days term informed, “Demand has been very sluggish as weakening Chinese Yuan discourages buying interest for import cargoes. We think therefore suppliers stepped back on their offers to close deals. We plan to purchase a small quantity to maintain stock levels.”

Another distributor forward selling Indian homo-PP cargoes for July and August shipment at $860-870/ton CFR China, LC 90 days term commented, “We are not very optimistic about the near term outlook despite the overall limited availability. We have only offered to some regular customers at the above-mentioned price levels, and currently waiting for the respond.”

China market will be off from next Thursday for the Dragon boat Festival, shortening the trading days in the week ahead. Players are expecting discount on deals, yet many shared a common view of seeing limited extent of price reduction.

Import homo-PP to China is currently reported at $860-950/ton CFR China, LC 0-90 days term.