November PP prices have been announced higher to Asia, Turkey. The increases came despite fluctuating crude oil prices, hesitant demand in China as a result of the Chinese Central Bank’s recent decision to raise interest rates, along with the lower spot propylene costs, which have been posting gradual decreases since the middle of October in Asia (total decrease of US$55/ton since then), as per Chemorbis. Limited PP availability for overseas cargoes was cited as the main reason for sellers’ initial hike announcements.
In China several overseas producers, mainly from the Middle East, announced their November homo-PP offers with significant increases of US$80-100/ton from their October levels, while a Southeast Asian producer nominated a relatively modest increase of US$20/ton from last month. Under the influence of the upward rally in China, the Southeast Asian PP market, which had already witnessed US$80-120/ton higher sell ideas from a couple of regional producers for November in the previous week, also saw higher initial prices this week. In the import market, Middle Eastern and Indian producers revealed their November homo-PP offers with increases of US$55-90/ton from the October level, while another Middle Eastern producer, who sold out their October allocations this week, stated that they are planning to seek a US$50/ton price increase on their November offer levels.
In Turkey’s PP market, where players have been reporting a limited number of supply sources from the Middle East for some time, the November outlook was already firm on the back of the bullish developments outside the country, along with the absence of some regular import sources over the past week. In line with players’ expectations, a Middle Eastern producer followed a similar pricing strategy in Turkey and disclosed their November PP prices this week with an increase of US$50/ton from last month. Currently, Turkish players are waiting for more November offers from major producers later this week.