17 September 2012 09:17 [Source: ICIS news]
SINGAPORE (ICIS)--Import prices of polypropylene (PP) in China rose by 1.4% on Monday, supported by restocking activity as sentiment turned bullish amid stronger domestic prices, industry sources said.
The benchmark PP flat yarn grade for September shipment was selling at $1,470-1,480/tonne (€1,117-1.125/tonne) CFR (cost and freight) ?xml:namespace>
Domestic producers and distributors hiked offers on Monday as their inventories are running low, local distributors said.
Local PP producers raised their prices for PP flat yarn on Monday by CNY50-200/tonne ($8-32/tonne) to yuan (CNY) 11,850-12,050/tonne ex-works, traders said.
Local distributors, on the other hand, are selling locally produced PP flat yarn grade at CNY11,700-12,300/tonne in the domestic market, CNY100-300/tonne higher from Friday, they said.
A number of Chinese plastics end-users and distributors are holding low inventories. They have been refraining from building up stocks since August on fear that prices would fall should the eurozone sovereign debt crisis worsens, local traders said.
Some Chinese importers were also concerned that PP prices would weaken when the new PP plants in China come on stream in the second half of the year, traders said.
Around 1.09m tonnes of new polypropylene (PP) capacity are scheduled to come on stream in
($1 = CNY6.32 / $1 = €0.76)
Additional reporting by Angie Li
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