PP Import Market: Price Stabilized and Deals Reflected Discussions
1. PP Import Market Prices
China PP Import Market Price
2. International PP Prices
China’s PP import prices stabilized and then moved within narrow ranges because of firmer costs and rising futures prices. Deals were muted. The USD to RMB exchange rate further ramped up and China’s PP prices rebounded slightly. But the arbitrage window stayed open in the import market, as overseas PP prices remained lower than China-origin PP prices with spread of RMB 200-300/mt. Overseas producers still had high sales pressure. Traders raised offers marginally. It was heard that a producer in the Middle East quoted PP homo at $920/mt.
In terms of imported resources that circulated in China, mainstream offers for September and October 2022 raffia shipments were $920-950/mt, and those for injection shipments were $920-950/mt.
In the PP copolymer market, prevailing prices for September and October 2022 shipments hovered at $930-970/mt, and deals were lackluster. Mainstream offers for transparent PP lingered at $950-1,030/mt. SCI reckons that PP import prices will probably be mixed in the short run if the USD to RMB exchange rate remains in an uptrend.
In the export market, the downstream demand failed to revive, even if the traditional demand peak season drew near. China’s producers whittled down offers for exports, but the actual deals didn’t improve remarkably. The export arbitrage window will probably stay closed in the near term. Downstream buyers were wary about purchasing.
3. PP Import Volume
SCI learned that arrivals of PP import cargoes climbed a little in the fourth week of August. Deals of low-priced resources were favorable in the import market. Mainstream ports in China saw a marginal change in inventories.
4. Import Market Forecast
Currently, some new units at home and abroad are planned to become operational. PP supply is relatively stable in some foreign regions, and it is supposed to increase in the later period. However, end users are likely to maintain low inventories of feedstock amid prudent sentiment. Sales of PP import cargoes met increasing resistance. If the USD to RMB exchange rate further ramps up, China’s PP export market will encounter opportunities. There are a lot of uncertainties that whether traditional demand peak season will come in September and give wings to PP market or not. Participants are recommended to keep an eye on orders at downstream companies and operate cautiously.
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