China-Origin PP and Imported PP Price Comparison
Preface: China’s PP import prices saw ups and downs over the past five years with multiply influential factors. How about the trends in 2021? SCI make you access to more details about PP import market.
The domestic PP price and the imported PP price shared a similar trend from 2017 to 2021, and the imported PP price changed mainly according to changes in the domestic PP price. The main price drivers included PP fundamentals, the financial attribute of PP, national policies, cost and prices of related products.
In Q1, 2021, international PP prices showed an uptrend, so China’s traders enjoyed great profits during the export businesses. Some imported resources were even exported for profit gains, and so were China-origin resources. FOB prices of PP proved resilient because of favorable market internationally, and this also pushed China-origin PP prices up. Up to the end of October 2021, the highest imported PP price and the lowest one both appeared in Q1. The lowest price was RMB 8,212/mt in January, while the highest price was RMB 10,960/mt in H2 February. The largest price spread between China-origin PP and imported PP occurred in February, reaching RMB 2,258/mt, as international prices ramped up amid the dearth of supply. Especially in the Middle East, PP units underwent intensive maintenance, or the production was affected by other force majeure incidents. However, as overseas PP units resumed production and the export profits lowered, China’s PP market gradually returned to normal and was dominated mainly by fundamentals. From January to May, the PP supply-demand pattern in China was impacted by the total export volume, but the influence was expected to weaken in Q3 and Q4 due to decreasing exports.
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