Global Producer Reveals March PP Sell Ideas to China26 Jan 2011 • by Natalie Aster
In China, a global producer revealed their sell ideas for March shipment cargoes for South Korean and Middle Eastern PP with $30/ton increases over their February offers.
Accordingly, the producer’s sell idea for South Korean PP block copolymer injection is at $1640/ton on CFR China, subject to 6% customs duty, cash basis while their sell idea for Middle Eastern PP raffia and injection is at $1550/ton on CFR China, subject to 6.5% customs duty, cash basis. Yet, due to the slow trading activities ahead of the impending Chinese New Year holiday, the seller has not been able to conclude any deals.
Click here for a graph of import PP prices in China and Southeast Asia for the past 12 weeks
Higher propylene costs coupled with upcoming maintenance plans at Asian crackers as well as reports of limited PP availability have led to a firming PP market trend in Asia. Meanwhile, expectations regarding the post-holiday market trend focus on further increases in the region.