Core Viewpoint - The export profits of polypropylene (PP) are being compressed due to rising near-sea freight rates and a strengthening RMB, leading to limited growth in export volumes expected for November and December [1][9]. Group 1: Export Volume and Pricing - Domestic suppliers are continuously lowering offshore quotes to stimulate foreign demand, but rising near-sea freight rates and a stronger RMB are limiting the completion of export orders, with expected export volume for November and December remaining between 250,000 to 280,000 tons [1][9]. - Southeast Asia is the main destination for China's PP exports, with Vietnam, Indonesia, Thailand, and the Philippines accounting for 32.33% of the total export volume. However, the export volume has been declining due to reduced overseas maintenance and insufficient demand during the peak season, with a total of 777,100 tons exported in Q3, a 6.56% decrease quarter-on-quarter [2][9]. Group 2: Freight Rates and Market Conditions - In Q3, the shipping market was weak due to uncertainties surrounding US-China tariffs and a lack of demand, leading to delayed shipping times. However, entering Q4, the near-sea freight rates, particularly in Asia, have increased significantly due to pre-Spring Festival shipping demand, with rates rising to a nearly 10-month high of $540/TEU, a 31.39% increase from mid-October [4][9]. - The increase in near-sea freight rates is putting pressure on export profits, becoming a key variable affecting export orders [4][9]. Group 3: Currency Impact - The RMB has strengthened against the USD, with the exchange rate surpassing 7.10, reaching 7.0796 on November 26, the highest level since November 2024. This appreciation is partly driven by market expectations of potential interest rate cuts by the Federal Reserve [6][7]. - A stronger RMB negatively impacts export companies as it reduces the profit margins when converting USD payments into RMB, thereby limiting the negotiation of some export orders [6][7].