After a strong rally after the National Day holiday, both local and import PP prices reversed course over the past week as Dalian futures prices fell and have continued to trend lower since then.

January PP futures on the Dalian Commodity Exchange have been trading lower since October 19 and are down 862 CNY/mt ($135/mt) from the previous week, as of Oct. 26.

Local PP homo raffia and injection raffia prices have decreased by a total of CNY 1100-1150/ton ($172-$180/ton) in the past two weeks, down to $8800-9050/ton ($1218-1253/ton excluding VAT) ) by China ex-warehousing method, cash includes VAT.

For imports, the total weekly decline was relatively smaller at $20-40/ton and prices came in at $1200-1260/ton CIF China, cash.

The trader also commented: “The National Development and Reform Commission has issued three consecutive documents to guide the long-term stability of coal prices. Since then, Dalian futures prices have undergone a sharp downward correction and spot quotes have followed the same trend. We are looking at exporting some Chinese PP to Southeast Asia as prices in that region are still higher.”