Thailand market players commented that the adjustment on local PP prices is not attractive, while localized PE cargoes were concluded at a compelling level. Based on the data collected by SSESSMENTS.COM, offers for PP Homo Film, PP Homo Injection, and PP Homo Raffia from the local producers in the country were adjusted down between THB500-1,000/ton ($15-30/ton) as compared to last week’s level. Despite the price reduction, the offers are still higher than the deals concluded last week. Last week, the deals for PP Homo Raffia were concluded at THB27,000/ton ($823/ton) on cash, FD Thailand basis and excluding 7% VAT. Due to the difficulties to move out the materials, last week, the producer was willing to consider buyers’ bids, depending on the purchasing volume.
In the import market, offers for Singaporean PP Homo Raffia from a global trading house stand at $810/ton on LC at sight, CIF Thailand main port basis with minimum purchases of 100-200 tons. A local trader commented that this level of offers would not be workable in the Thailand market at the moment. Meanwhile, SSESSMENTS.COM was told that offers for PP Homo Film of United Arab Emirates origin dipped by $50/ton as compared to the end of March, stands at $800/ton on LC at sight, CIF Thailand main port basis.
For PE, a local producer in the country has implemented a downward price correction of THB500/ton ($15/ton) as compared to last week for HDPE Film, LDPE Film, and LLDPE Film C4. However, market players told SSESSMENTS.COM that offers at the current level were already available in the market last week. For localized cargoes, a trader sold United Arab Emirates HDPE Film cargoes at THB27,500/ton ($838/ton) on cash, FD Thailand basis and excluding 7% VAT. The offers gained a good response from buyers as it was lowered by THB1,500/ton ($46/ton) from the local producer’s price list available last week. Despite it leaving a thin margin, the trader stated that it is still tolerable.
The overall demand for PE and PP in Thailand hampered by the Coronavirus outbreak. As the government implemented a curfew at 10.00 PM in order to curb the spread of the virus, it is giving a severe impact on demand for the end products of PE and PP. Looking ahead, Thailand market players stated a bearish outlook to SSESSMENTS.COM as there is no sign of a rebound in prices and demand in the near term.
