Low stocks of polypropylene (PP) in China prompted Chinese suppliers to increase their price offers in the local market, ICIS reports, citing market participants.
On May 22, Chinese manufacturer Sinopec increased the supply of major brands of PP homopolymer and PP copolymers at CNY100-150 per ton (USD14-22 per ton) to support the local market, a company source said on Wednesday.
The Sinopec sales department in East China – Shanghai PC increased the prices of M2600R brand copolymer by CNY150 per tonne to CNY9 300 per tonne, EXW, while the K8003 brand from Yangzi PC grew by CNY100 per tonne to CNY9 150 per ton, EXW.
Zhenhai Refining & Chemical Co (ZRCC) grade T30S PP is offered at a price of CNY8 500 per ton, EXW, which is more per ton by CNY100.
Aggregate stocks of polypropylene and polyethylene of Sinopec and PetroChina companies currently amount to about 0.78 million tons, which is 22% lower than the level of mid-May, according to sources in the market.
According to the data of the company Market Report, in the first three months of this year, imports of PP to Russia decreased by 19% compared with the same indicator in 2018 and amounted to 37.1 thousand tons. The most significantly reduced imports of propylene homopolymer (PP-homo).