Many traders were puzzled by the market response but anticipated the favourable outcome was due to a sizable number of buyers returning to the market today as the auctioned price was still about CNY50/ton lower than local prices.
Key Chinese PP producer – Zhongjing Petrochemical once again lifted export PP offers by $5/ton from the previous week citing the lack of sales pressure. Nevertheless, the upward price adjustments face numerous questions among overseas buyers
A rebounded key futures contract on the Dalian Commodity Exchange in addition to the rising energy complex supported the firming trend, yet market participants are not convinced that this uptrend could be sustained.