In china, the domestic prices of polypropylene (PP) have been trading on equality since last five months. As per the ChemOrbis Price-Wizard, this condition has started to regain its level from last few weeks and domestically regained its position of a premium over the imports.
The prices of imported polypropylene have been under downward pressure due to the prices of propylene and lower crude oil naphtha. Crude oil prices traded mostly below US dollar 40 barrel in last week, before recovering a bit over this inception as the week described to an end. In the meantime, prices of Asian naphtha shed 45 USD per ton last week and advert the propylene prices in Asia up to 150 USD per ton when compared to data from the previous week. Although the drop in PP in January due to the Dalian Commodity Exchange was smaller, given the Chinese central bank’s deposit to push up to 150 billion Yuan i.e. USD23.4 billion in the market in order to balance the effects of growing capital expenditures from a weakening economy that declines the stock market. The bank will also amended its lending rate for one year and the rate of one year deposit by twenty-five basis points.
The China’s imported PP market price has been broken below the US$ 1000 per ton while any prices above this are expected to get down very soon due to the weak demand. The theoretical cost to produce PP, as per the present cost of PP, is USD85 per ton which is below the import offer range of PP in China. This situation has helped local prices to regain their level of premium again.
News Source:- http://www.plastemart.com/plastic-facts-information.asp?news_id=2u7582&news=Domestic-homoPP-regains-premium-over-imports-in-China