Even though sentiments on the resellers’ and buyers’ side have faltered in China’s PP market upon lower futures prices and daily losses in the energy markets, major Middle Eastern and Asian suppliers are maintaining their firm stance, continuing to reveal higher PP prices for August. The hike announcements are ranging from US$30-70/ton over July, as per the pricing service of ChemOrbis, triggered mainly by limited supply and cost pressure.
Starting with Middle Eastern producers, a major Saudi Arabian producer approached the PP market with US$40-50/ton increases for homo PP. “We would like to keep our offers firm for now even though demand is thin and our sales are slow. As our supply is limited, we can sell outside China and obtain better margins,” commented a source from the producer.
An official distributor of another Saudi Arabian producer started offering homo PP US$30-35/ton higher for August shipments. The trader said, “We have already concluded some deals although the trading activities have somewhat slowed this week.” A third Saudi Arabian producer has revealed US$60-70/ton higher PP offers for August. Omani homo PP injection is also offered US$65-70/ton higher this week. A trader receiving higher offers from the Middle East for August shipments said, “We heard that supply from the region will be reduced due to Ramadan and regional producers all argue that their supply is limited.” Hence, the trader thinks that the import market will remain firm even though the local market is softer and the trading activities are slow. When it comes to Asian suppliers, they appear to be maintaining their firm stance as well, as per ChemOrbis. A major South Korean producer said that they have concluded deals for homo PP with US$30-35/ton increases over early July. A Malaysian producer also started to offer homo PP for August with an increase of US$50-60/ton over July. A source from the company blamed the overall rising trend and limited supply.
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