Comments by market players on PP Homo Raffia market as follows:
At the beginning of the week, a Chinese polyolefins producer commented, “PP prices are generally stable over the week. So far, strong demand is only captured in the packaging sector.”
A Chinese trader contacted by SSESSMENTS.COM on July 6 stated, “Supported by the upward movement in the futures market, local PP Homo Raffia prices have increased between CNY50-100/ton ($7-14/ton). While from the import market, there is no strong factor that could support further upward price adjustment. Hence, most traders are keeping import PP Homo Raffia offers stable from last week. In terms of demand, converters are already prepared for the traditional low season; thus, they are maintaining the lean inventory and unwilling to place new orders. In the days to come, the relatively tight supply from the producers’ end and the firm crude oil prices will support PP Homo Raffia prices to be stable at the current level although demand remains dull.”
Pertaining to the import offers, on July 7 a trader informed, “Offers for import PP Homo Raffia of Saudi origin are available between $930-950/ton on LC at sight, CIF China main port basis. This level remains unchanged from two weeks ago. Although the offers remain stable, we think such a level is too high. Actually, the producer provides a room for negotiation, but buyers remain uninterested.”
“On a weekly comparison, local PP Homo Raffia prices have increased between CNY150-200/ton ($21-28/ton) following the firmer PP prices in the futures market. However, buying sentiment has not improved since it is the traditional low season for PP in the China market. As such, buyers are procuring on a hand-to-mouth basis. In the import market, this week we have bought Indian PP Homo Raffia cargoes at $910/ton on LC at sight, CIF main port basis. Following the stronger Chinese Yuan against the US Dollar, buyers are showing better acceptance towards the import offers. Buyers are willing to accept import offers above $900/ton-level. Offers below $900/ton-level are no longer available in the market, mostly at $920/ton and above. In the near term, we expect that PP Homo Raffia prices would remain stable as import cargoes are not ample,” said a Chinese trader.
On July 9, PP Homo Raffia price trend started to reverse, “PP Homo Raffia prices could not sustain on the uptrend without any supporting factors. On July 6-7, PP Homo Raffia prices in the spot market were on the uptrend as supported by the movement in the futures market. However, on Wednesday, July 8, PP prices in the futures market softened and buyers refrained from procuring activities. As such, today we make a downward price correction for local PP Homo Raffia between CNY50-100/ton ($7-14/ton) as compared to a day earlier. Looking ahead, we think local prices will follow movements in the futures market. Although the firm monomer prices could serve as a supporting factor for PP Homo Raffia, buying sentiment would follow the prices in the futures market and the spot prices have to follow suit,” stated a Chinese trader to SSESSMENTS.COM.
Transactions for import PP Homo Raffia between July 6 to July 10 on LC at sight, CIF China Main Port basis
Tags: Asia Pacific,China,English,NEA,News,PP
Published on July 13, 2020 10:48 AM (GMT+8)
