- Poor economics hinder upside in China market- A fall upstream boosts margins





Asian polypropylene prices fell in the week
ending March 22nd due to concerns about global financial stability affecting
trading sentiment. Some market observers are skeptical that
stimulus policies will prove successful in supporting the economy. "The
long-term problem, however, is that there is insufficient consumption capacity. We need to
increase our incomes before people have the confidence and ability to spend. Because some
regional players were on Ramadan holidays, trade activity in Southeast Asia was
limited. The offer levels were stable to lower on the
week. Domestic prices in Vietnam were heard at $990-$1,005/mt according to
sources. This was due to some regional players being away for Ramadan holidays. Another
source stated that cost pressures will reduce the extent of further price
drops. A PP buyer...