Comments by market players on PP Homo Raffia market as follows:
A Chinese trader contacted by SSESSMENTS.COM on April 27 revealed, “We have received import PP Homo Raffia offers from Vietnam with a reduction of $120/ton as compared to a fortnight ago. At the moment, the offers stand at $860/ton on LC at sight, CIF China main port basis. While in the local market, the increases in PP prices in the futures market have supported PP Homo Raffia prices in the spot market to increase between CNY50-100/ton ($7-14/ton) as compared to Friday, April 24. However, demand from the downstream market remains slow as most buyers prefer to adopt a wait and see stance.”
A trader based in Ningbo commented, “As of recent, the production rate for PP Homo Raffia in China is already around 28%. Coming to the end of April, the speculation in PP Homo Fiber market has already weakened and the market has back to supply and demand issues. In general, inventory pressure issues are still haunting China’s PP market. PP Homo Raffia prices have a big chance to drop in May as the inventory level of the two leading Chinese polyolefins producers will be piling up after the Labor Day holiday.”
An Indonesian trader stated, “We managed to sell local PP Homo Raffia cargoes to China market at $790/ton on LC at sight, CIF China main port basis. We decided to offer to the China market as most manufacturers in Indonesia slash the operating rate in the midst of the Coronavirus outbreak. Even some home appliances and shoes factories have halted the production activities on the back of nil demand for those end products. Local buyers did not even bother to submit inquiries or check prices.”
“We opined that the inventory level for PP Homo Raffia is not very ample at the moment. As such, it provides some support for PP Homo Raffia prices to remain stable. However, coming to May, import cargoes will arrive and the production rate for PP Homo Raffia will increase. As a result, most buyers are expecting lower PP Homo Raffia prices in May and very cautious in procuring materials at the moment,” said a global trading house.
On April 29, a Chinese trader stated, “At the moment, China’s market is already in a holiday mood. Hence, PP Homo Raffia prices are stable as compared to yesterday. Most of the distributors of two leading Chinese polyolefins producers have accomplished the monthly sales target. Therefore, they do not have inventory pressure.”
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Transactions for import PP Homo Raffia between April 27 to May 1, CIF China Main Port basis
Tags: Asia Pacific,China,English,NEA,News,PP
Published on May 4, 2020 12:22 PM (GMT+8)
