After two consecutive sessions of stabilising futures contracts on the Dalian Commodity Exchange, a couple of Chinese suppliers decided to introduce a firmer stance on export homo-PP offers.
In an interesting development, Malaysian homo-PP was concluded at below the $900/ton threshold in China, the first time such prices showed up in a couple of years.
Chinese suppliers have been struggling to deplete the bloating stocks as the demand at home and overseas fall sharply following the Labour Day holiday.
Buyers maintain buying ideas at $950/ton or lower for Chinese-origin homo-PP yarn and injection while claiming to see no support for a rebound in the near term.
A couple of regional suppliers have stepped up the effort to secure deals by cutting offers sharply, i.e. South Korean homo-PP injection dived $80/ton from the initial price list
Even at three-digit price levels, purchasing activities remain subdued as buyers fear further price reductions ahead.
Responses from Southeast Asian buyers remained subdued with buyers refusing to lift their buy ideas for Chinese yarn and injection cargoes above the $1000/ton threshold based on CIF terms.
In the PP market, Southeast Asian buyers expect a stable to softer trend with cargoes previously priced at the upper end of the overall price range being more prone to downward pressure.
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