China PP falls $150/t on weak demand

08 October 2008 06:03 [Source: ICIS news]

SINGAPORE (ICIS news)--China polypropylene (PP) prices fell by as much as $150/tonne from two weeks ago as an Asian producer slashed prices further to clear stocks, producers said.

“An Asian producer dropped its offers for injection and yarn grade PP to $1,200/tonne CFR China after failing to find buyers at $1,250/tonne,” one of the Asian producers said.

“PP yarn and injection grades were offered at $1,200/tonne CFR China for prompt lifting at the bonded warehouse now,” a second PP producer concurred.

The sharp decline indicated that the China PP market was still struggling to find the bottom, after registering the steepest week-on-week fall two weeks ago, a trader said.

China PP injection and yarn grade prices were stable at $1,300-1,350/tonne CFR China last week when trade ground to a halt due to the China National Day holidays, according to global chemical market intelligence service ICIS pricing.

“PP producers from the Middle East to Asia were all holding very high stocks due to weak demand in the past months,” the first PP producer said.

At $1,200/tonne CFR China, the price of the benchmark injection and yarn grade PP is $395/tonne or about 24% lower than the weekly average price of $1,595/tonne a month ago, according to ICIS pricing.

Major PP exporters to China include ExxonMobil, LyondellBasell, Sabic, Honam Petrochemical, Samsung Total Petrochemical and Reliance.

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By: Chow Bee Lin
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