Chinese distributors cut PP prices on lower producers’ offers

22 October 2012 10:55  [Source: ICIS news]

SINGAPORE (ICIS)--Distributors in China slashed their offers for polypropylene (PP) in the domestic market on Monday, in response to lower offers from local resin producers, market sources said.

Local resin producers dropped their offers for PP yarn and PP block copolymer by yuan (CNY) 150-300/tonne ($24-48/tonne) in east and south China to CNY11,200-11,350/tonne EXWH (ex-warehouse) and CNY11,300-11,450/tonne EXWH respectively, local distributors said.

The local producers’ move to cut their prices seemed to suggest that they were under inventory pressure, this in turn led local distributors to drop their offers, the distributors said.

The prices of PP yarn and PP copolymer were assessed at CNY10,950-11,400/tonne EXWH and CNY11,350-11,900/tonne EXWH respectively, down by CNY50-100/tonne from 19 October, according to Chemease, an ICIS service in China.

Many local resin distributors and processors said they felt the market outlook was bearish because of low business visibility and subdued downstream demand.

($1 = CNY6.25)

Additional reporting by Doreen Zhao, Lizzie Yu, Rain Dong

By: Angie Li
+65 6780 4359

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