MOSCOW (MRC) – Last week, PP prices in Asia were reduced by USD10-40/tonne amid low demand and the global worsening of economic situation. The immediate market perspectives remain unclear, according to MRC Price Report.
Last week, low buying activity in the Asian markets resulted in PP price cut by USD10-40/tonne. High volatility of oil futures, constantly declining demand for polymers and pessimistic outlook for the global economic situation keep putting significant pressure on the demand.
Many polyolefin plants in China resumed operations in late September-early October after outages for scheduled maintenance. Some Chinese importers are concerned that polypropylene prices in the domestic market in China might drop significantly on the back of the increased demand in the market.
South-East countries have also considerably reduced their need for polypropylene. In Indonesia, the zero duty for ASEAN producers might result in the increased competition between suppliers, yet, the converters are not in a hurry to replenish their inventories. Elsewhere in the region, converters report that they have already covered their October needs in the polymer.
Many market participants expect the buying activity in the PP market in Asia to keep being low on high volatility of oil futures and unfavorable outlook for the world economy. PP supplies from Saudi Arabia are limited and they are unlikely to affect the market. Last week, deals for homopolymer polypropylene were concluded in the range of USD1,410-1,460/tonne, CFR, which is by USD10-40/tonne down from the previous week.