Chinese suppliers sharply reduced export offers for homo-PP this week in response to persistently weak demand and an increasingly uncertain market outlook. The price cuts sparked some interest from international buyers, but higher shipping costs have deterred any immediate deals.
The PET bottle market, which briefly surged earlier this month on expectations of government intervention, has since faced significant downward pressure as the underlying market fundamentals reassert themselves.
Trading activities on the Shenhua Auction Platform showed marked improvement on the second day of the week, despite the ongoing decline in futures contracts on the Dalian Commodity Exchange. Market sources attributed the increased buying interest to the coal-based producer's decision to reduce auction prices by CNY 20-50/ton
A source close to the producer explained that the price hike is largely driven by a strengthening trend in China’s PE market, despite the muted impact of recent economic stimulus measures by the Chinese government.