- Far East Asia origin $970-1,000/ton
- Middle East origin $890-960/ton
- Southeast Asia origin $1,010/ton
Comments by market players on PP Homo Raffia market as follows:
A distributor of a South Korean polyolefins producer contacted by SSESSMENTS.COM on July 13 informed, “August shipment offers for South Korean PP Homo Raffia to the China market had increased by $30/ton compared to July shipment offers. The offers currently at $980/ton on LC at sight, CIF Main Port basis. The increase was made as driven by the firm propylene prices coupled with an uptrend in the international market. We actually worried about the sales as some buyers already voiced out that the prices are deemed too high.”
“This week, August shipment PP Homo Raffia offers are available between $900-910/ton for India origin and $890-930/ton for Middle East origin. Both are on LC at sight, CIF China Main Port basis. At the moment, fresh import PP offers in the market are rather limited. However, converters remain reluctant in procuring amid the slow end-products demand and skyrocketing prices for resins. Hence, some of them prefer to keep buying on a hand-to-mouth basis,” as commented by a China-based trader to SSESSMENTS.COM.
“We managed to sell some volumes for PP Homo Raffia of Saudi origin to re-exporters at $940/ton on LC at sight, CIF China Main Port basis, for August shipment. Still, for the general trading, such a level remains unsuitable with buyers’ buy idea for Middle Eastern PP Homo Raffia cargoes; which only at $900/ton-level,” a global trading house reported on July 14.
“This week, a South Korean producer announced early August shipment offers for PP Homo Raffia cargoes at $30-40/ton higher than last week’s level. The producer told us that the company has divided the allocation into halves and decided to offer twice this month; this time is for first-half of August shipment. For the upcoming offers, the producer notified that the offers will likely be adjusted higher between $20-30/ton compared to the current offers. Behind this selling strategy, we assume that the producer is currently having high inventory on their end and wants to start selling it early. On the other side, the response is lukewarm as most converters have yet to figure out their needs for August production and they did not want to rush the procurement activities, especially when demand for finished products is not too promising. Meanwhile, we decided to take some small volumes of PP Homo Raffia from the producer with deals concluded at $10/ton lower than the initial offer levels, or $970/ton on LC at sight, CIF China Main Port basis,” a Chinese trader informed SSESSMENTS.COM.
“We have received September shipment offers for PP Homo Raffia from the leading Indian petrochemical producer at $5/ton higher than a fortnight ago, available at $915/ton. At the same time, we also received offers for the same materials from a Saudi producer at $940-960/ton, but no price comparison available. To date, deals for both cargoes remain limited,” as stated by another trader based in China on July 15.
“We have received August shipment PP Homo Raffia offers of South Korea origin at $985/ton on LC at sight, CIF China Main Port basis. We decided to offer the cargoes to customers at $1,000/ton on the same payment and delivery terms. Unfortunately, such a level is way too high and unmatch with the customers’ buy idea at $950/ton-level. Thus, we shrugged off the supplier’s offers,” as told by a Chinese trader to SSESSMENTS.COM.
On July 15, a global trading house contacted by SSESSMENTS.COM’s team informed, “A Saudi polyolefins producer just announced August shipment offers to the China market with an adjustment. Particularly for PP Homo Raffia cargoes, the offers are available at $1,020/ton on LC at sight, CIF Main Port basis, or $10/ton higher than July shipment. No deals concluded so far as buyers remain objecting to high prices.”
“A Malaysian polyolefins producer just announced August shipment offers to the China market. As compared to July shipment, offers for PP Homo Raffia from the producer emerged with a notable increment of $70/ton,” as informed by a Chinese distributor on July 17.
Transactions for import PP Homo Raffia between July 13 to July 17 on LC at sight, CIF China Main Port basis
| Origin | Transaction Type | Offers (USD/ton) |
|---|
| Far East Asia | Buy Idea | 950 |
| Far East Asia | Offer Given | 980-1,000 |
| Far East Asia | Offer Received | 980-985 |
| Far East Asia | Purchased | 970 |
| Indian Subcontinent | Offer Given | 900-910 |
| Indian Subcontinent | Offer Received | 915* |
| Middle East | Buy Idea | 900 |
| Middle East | Offer Given | 890-930 |
| Middle East | Offer Received | 960-1,020 |
| Middle East | Sold | 940** |
| Southeast Asia | Offer Given | 1,010 |
Description: *September shipment offers **Sold to re-exporters
Tags: Asia Pacific,China,English,NEA,News,PP
Published on July 20, 2020 10:47 AM (GMT+8)
Last Updated on July 20, 2020 10:47 AM (GMT+8)
