PP activity wanes as holidays approach
In China, players reported seeing reduced activity in the PP market as some converters are opting to step away from their desks ahead of the Chinese New Year holidays in order to limit their risks in the face of an uncertain economic outlook. “Stronger PP futures prices prevented physical prices from falling, but activity is slowing down as many buyers are beginning to step away from the market to take extended holidays. Several of our customers complained of receiving unsatisfactory end product orders, adding that they plan to suspend production for longer than usual for this year’s holiday in order to limit their costs,” a producer source reported. Local prices gained some ground at the lower end of the range owing to stronger futures prices, with May PP futures on the Dalian Commodity Exchange rising CNY240/ton ($36/ton) on the week.