A local distributor reported to SSESSMENTS.COM that curfew in Thailand has led to significant changes in PE and PP demand. In comparison to a week earlier, the offers from a Thai producer for all PE grades decreased by THB500/ton ($15/ton). However, the distributor stated that the offers already available in the open market last week as most traders were selling HDPE Film and LLDPE Film C4 at that level. So far, there is no deal concluded yet. While for PP, the offers from another local producer also adjusted down by THB500/ton ($15/ton) compared to the same period. On the supply side, there is no issue reported from the producers.
Demand is generally slow in Thailand as sales for converters’ finished products decrease. As explained to SSESSMENTS.COM, customers’ orders have dropped significantly, especially for those supplying to malls in Thailand. Due to the curfew, citizens are not going out. Hence, the sales of the finished products are slowing down. “We received information that some converters plan to halt the production activity if the demand does not improve in the near term, otherwise the inventory will keep pilling up,” the trader added. Pertaining to the uptrend in China market, the trader opined that it will be short-lived as the demand is not strong enough to support the price rebound.
