A trader based in Thailand informed SSESSMENTS.COM that current demand condition had forced the company to keep lean PE and PP inventory. According to the trader, the rainy season in the country has dampened PE and PP demand. Moreover, the polymers market in Thailand is still quiet as most players just get back to work on July 29 after a long weekend holiday for the King’s Birthday. Owing to these reasons, the trader refrains from purchasing import materials and maintains PE and PP inventory as low as possible.
In terms of pricing, offers for local PE cargoes from the trader’s end are stable compared to last week’s level. For localized cargoes, the trader received Malaysian LDPE Film offers at THB31,500/ton ($1,000/ton) on cash, FD Thailand basis and excluding 7% VAT, or THB1,500/ton ($48/ton) lower than local LDPE Film offers. No deals were concluded as the trader only plans to purchase PE materials from a local producer to maintain the long-term relationship. However, so far, no fresh offers have been received from the particular local producer. As for PP, SSESSMENTS.COM noted that local PP Homo Film offers from the trader declined by THB1,000/ton ($32/ton) on the weekly comparison.
