- As stated to SSESSMENTS.COM, a Thai producer has adjusted down local PP offers twice in a week to boost sales. On Thursday, April 9, the producer applied another price reduction of THB500/ton ($15/ton) for local PP Homo Raffia cargoes as compared to Wednesday’s level. The latest offers from the producer are available in the market at THB28,000/ton ($854/ton) on cash, FD Thailand basis and excluding 7% VAT. To the export market, the producer initiated a price reduction of $20/ton for PP Homo Raffia as compared to last week’s level, available at $865/ton LC at sight, CIF Vietnam Main Port basis. Despite the price adjustment, most customers gave a cold shoulder as such a level is deemed too high.
- Whereas in Malaysia, a converter managed to secure some deals for local PP Homo Raffia cargoes from the leading Malaysian polyolefins producer at MYR3,600/ton ($830/ton) on cash, FD Malaysia basis and excluding 6% SST. The converter regarded the offer level as high but still proceeded to take some volume to cover monthly production needs as they cannot source from traders since most of them were away from their desks at the moment. Related to the Coronavirus outbreak, market talks have it that the Malaysian government will extend its month-old lockdown as new cases continue to surge in the country. For the outlook, the converter foresees that the ongoing lockdown will have a severe impact on the country’s economic growth.
