01 June 2012 04:05 [Source: ICIS news]
SINGAPORE (ICIS)--Average polypropylene (PP) import prices in ?xml:namespace>
The benchmark PP yarn grade was sold at $1,330-1,370/tonne (€1,077-1,110/tonne) CFR (cost and freight)
In the week ended 25 May,
Restocking activity is mainly driven by Chinese traders who had drawn down their inventories from end-March to early April on fears that regional PP prices would fall in tandem with falling values of feedstock propylene, market sources said.
Local traders also went on a buying spree of imported material following cuts in supply allocations by Chinese PP majors Sinopec and PetroChina in the domestic market, they said.
Sinopec and PetroChina are attempting to support domestic retail PP prices, by cutting allocations to local distributors, they said.
Some Chinese traders, which had earlier bought higher-priced cargoes, have returned to the import market for lower-priced material this week, with the aim of averaging out their raw material costs, market sources said.
($1 = €0.81)
Additional reporting by Chow Bee Lin
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