Polypropylene in Asia dips to 4 year low on domestic supply glut in China

05-Nov-15

CFR Far East Asia polypropylene raffia marker fell US$40/mt week on week to US$925/mt at the end of last week. This is the lowest since the assessment began in October 2011, due to an oversupply in China, as per Platts. Industry sources said ample supply and lower prices in the domestic China market have curbed interest in imported cargoes. "Everyone including Sinopec is facing pressure to sell," said a China-based polymer trader. "Coal-to-olefin material is coming from North China to East China and South China, creating a supply glut." The trader said producers are still expected to be profitable when domestic polypropylene prices are around Yuan 6,900/mt, given low feedstock costs.