- Vietnam PP market continues to face upward pressure from energy markets this week as crude oil prices steadily rise. On Tuesday, June 2, crude oil prices surge nearly 4%, posting their highest settlement in more than three months on expectations that OPEC and its allies will agree to extend output cuts during a teleconference likely to be held within this week, and as more countries began reopening their economies from weeks of coronavirus-led lockdowns. Since crude oil prices have been rallying, market talks have it that current local PP Homo Raffia offer from a Vietnamese producer is breaking VND24,000,000/ton ($1,028/ton)-threshold level. Similarly, Vietnam saw PP prices trending higher in the import market. This week, a Vietnamese trader reported on receiving import PP Homo Raffia offers from Thailand and Saudi origin. As compared to last week’s level, offers for PP Homo Raffia cargoes of Saudi origin moved up between $30-40/ton, while offers for Thailand origin cargoes are available at $30/ton higher. To date, the trader has yet to receive any feedback from customers, SSESSMENTS.COM was informed.
- Whereas in Indonesia, a local distributor mentioned to SSESSMENTS.COM that Indonesian PP market remains tepid this week, even after several adjustments made by several suppliers. According to the distributor, the upward adjustment in prices failed to revive buyers’ sentiment. Most buyers are reluctant to take the cargoes since local PP prices are increasing rapidly. This week, Indonesian producers and traders maintained their high price quotes to the domestic market. As compared to the previous price list, the leading Indonesian polyolefins producer initiated a price increase of IDR380,000/ton ($26.8/ton) for local PP Homo Raffia cargoes. Similarly, Indonesia’s largest local trading house applied an increase of IDR300,000/ton ($21/ton) on offers for local PP Homo Raffia cargoes as compared to last week’s level.
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