MonthlySSESSMENTS: December China PP Prices


  • Local PP Homo Raffia prices were stable to softer

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  • Zhejiang Petrochemical conducted a trial run on December 19

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  • PP prices predicted to decrease in the near term due to weak demand

On the week commencing December 2, SSESSMENTS.COM’s team noted that some traders in China decided to increase the local offers for PP Homo Raffia by CNY50/ton ($7/ton), while some others decided to keep the offers stable compared to the offers available on Friday, a week earlier. At the beginning of the second week, the offers were kept stable over the week. However, downward adjustments were recorded on December 10 and December 11 between CNY100-200/ton ($14-29/ton) and between CNY50-100/ton ($7-14/ton) respectively compared to the previous day’s levels. Moving to the third week, the offers for local PP Homo Raffia cargoes reduced between CNY50-150/ton ($7-22/ton) from the prior week following the decreases in the futures market. In the following week, local offers for PP Homo Raffia reduced between CNY50-150/ton ($7-22/ton) on a weekly comparison. On December 26, a reduction of CNY100/ton ($7/ton) recorded as compared to Tuesday’s level. 

In the first half of the month, offers for import PP Homo Raffia cargoes of India origin to China were adjusted upward between $5-15/ton on a weekly comparison. By the week commencing December 16, the offers for import Middle Eastern PP Homo Raffia cargoes were stable to a slight increase of $10/ton from a week earlier. Sources added to SSESSMENTS.COM that some sellers attempted a price increment considering the rather limited supply for spot PP Homo Raffia cargoes as well as to test the buyers’ response. Moving to the fourth week of December, the import offers for Middle Eastern cargoes edged down between $10-20/ton on a weekly comparison. 

SSESSMENTS.COM was told that the buying sentiment was flat and buyers were keeping the procurement on an as-needed basis. Moreover, the news of trial production at the new PP plant in China has further dampened the market sentiment. Following the decreases in the local prices, buyers interest in import cargoes was subsiding. On the production sector, Zhejiang Petrochemical conducted a trial production at the company’s new plant with a capacity of 900,000 tons/year on December 19.

Pertaining to the outlook, market sources opined that the PP Homo Raffia prices in China would be declining in the near term due to the weak demand as the Lunar New Year is drawing closer. However, sources added to SSESSMENTS.COM that the decrement should be within a limited range only.

*Offers for coal-based PP Homo Raffia

*Offers for coal-based PP Homo Raffia

Tags: Asia Pacific,China,English,EN PP CHINA MSS,MonthlySSESSMENTS,Northeast Asia,Polypropylene (PP) China PP Prices,PP prices

January 2, 2020 2:16 PM