Limited supply pushed up import homo-PP prices in China

China market resumes trading on Sunday after the Dragon Boat Festival with import homo-PP from dutiable origins firm up $20-30/ton compared to pre-holidays levels. Lower range below $900/ton CFR China threshold has technically disappeared from the mainstream market, which players blame supply tightness to be the primary cause.

A trader received Indian homo-PP at $920-930/ton CFR China, LC 90 days, some $20-30/ton higher than last week said, “Most of our overseas suppliers are not aggressive in giving new offers, claiming limited allocation. Besides, with the support from strong futures trades, domestic market has been following firmer trend in the past two weeks, which again creating more solid foundation for higher import prices.”

Another trader received offers for Middle Eastern homo-PP at $930/ton CFR China complained about his inability in obtaining Indian cargoes in the face of lacking availability. The source commented, “Domestic demand pick up earlier than expected with strong futures trade at the background have pushed up import prices. Compared to earlier this month, prices have increased approximate $60-70/ton, which left us very little room to export or re-export any cargoes to Southeast Asia.”

Players are currently monitoring further development to gauge the likely market direction in the near term, however, most expectation are pointing to a more stable to firmer trend. Import homo-PP prices to China are currently reported at $920-950/ton CFR China, LC 0-90 days.