SINGAPORE (ICIS)--South China’s polypropylene (PP) raffia yarn and injection prices decreased by yuan (CNY) 150-250/tonne ($25-41/tonne) in the week on back of adequate supply and lacklustre trading, despite shutdowns and reduced operating rates at some local PP plants, industry sources said on Friday.
The prices are on an EXWH (ex-warehouse) basis.
On 6 March, spot PP raffia yarn and injection prices in south China were assessed at CNY10,750-10,900/tonne EXWH and at CNY10,850-11,000/tonne EXWH respectively, compared with CNY10,950-11,050/tonne EXWH and CNY11,100-11,150/tonne EXWH respectively on 27 February, according to Chemease, an ICIS service in China.
Some local producers have cut their EXW (ex-works) prices or offered discounts of CNY50/tonne for the first 50 tonnes sold in order to promote deals. Some domestic distributors and traders have also dropped their offer levels to entice buying interest, the market sources said.
The downstream plastic processors had limited interest in purchasing due to their ample inventories of resins and weak orders of their finished goods, a downstream manufacturer said.
However, the shutdowns and reduced run rates at some local plants by companies such as Datang International, Shanghai Petrochemical, and Shanghai Secco Petrochemical, are expected to provide some support to the PP market.
($1 = CNY6.12)