China’s PP import offers jump on supply disruption from Formosa

01 August 2011 12:22  [Source: ICIS news]

SINGAPORE (ICIS)--China’s polypropylene (PP) distributors have raised their offers for imported material by 1.8-2.4% as they expect supply from Formosa Petrochemical to be disrupted.

A propylene pipeline at Formosa’s Mailiao petrochemical complex in Taiwan caught fire over the weekend. The company is a key exporter of PP to China.

Offers for the benchmark injection and yarn grades PP imported from the Middle East were at $1,580-1,620/tonne (€1,090-1,118/tonne) CFR (cost and freight) China on Monday for August shipment, $30-40/tonne or 1.8-2.4% higher from last Friday, the distributors said.

The higher offers have deterred buying interest but most distributors are not keen to give discounts amid the current positive market sentiment, they said.

Buying ideas for August shipment were mostly in the mid-$1,500s/tonne CFR China, they added.

 ($1= CNY6.44 / $1 = €0.69)

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By: Chow Bee Lin
+65 6780 4359

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