Asia PP remains under downward pressure, traders offload cargoes

Johanna Truong

06-May-2016

SINGAPORE (ICIS)–Polypropylene (PP) import prices in Asia remain under downward pressure from weak demand, prompting several producers and traders to lower offers to offload cargoes this week, market sources said on Friday.

In China, converters were reluctant to procure import cargoes despite availability of lower-priced cargoes, while procuring from local suppliers.

PP flat yarn was traded at $935-990/tonne (cost & freight) China, down by $35/tonne on the low end from last Friday.

In southeast Asia, limited transactions took place as a few suppliers and traders dropped their prices for dutiable PP flat yarn.

Dutiable Indian and Saudi PP flat yarn were traded at $1,050-1,060/tonne CFR (cost and freight) SE Asia this week, down by $10-20/tonne from the previous week.

The wide price gap of dutiable PP homopolymer grades between China and SE Asia deterred buying interest for deep sea cargoes, as market players expected price declines in the near term.

PP flat yarn in China was under downward pressure as locally produced material was offered competitively against imports, a market player said.

Meanwhile, ASEAN suppliers were still clearing backlogs, and needed not to drop their prices amid limited supply for spot trade.

Additional reporting by Lizzie Yu

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