Despite cold responses from buyers, SSESSMENTS.COM was told that the supply condition has prompted a Thai producer to adjust PP offers further. Compared to a week earlier, the offers for PP Homo Film, PP Homo Injection, and PP Homo Raffia from a local producer adjusted higher by THB500/ton ($16/ton) as tightness in supply persists. Besides supply condition, market talks have it that the other producer’s cracker unit experienced some technical issues since last Tuesday or Wednesday and there is no information yet whether the cracker is already running normally or not. As such, the producer is triggered to increase the offers. The trader stated that the offers are deemed too high and unworkable. Only a few small customers are willing to make purchases at the current offers. While for big customers, most of them already have sufficient inventory on hand and are still waiting for the producer to deliver the cargoes that have been booked previously at a lower price. Moreover, there is no significant improvement recorded for finished product demand as the sales are affected by the Coronavirus pandemic.
To the export market, the offers for Thai PP Homo Injection to Vietnam market surfaced with a further upward adjustment of $30/ton on a weekly comparison, available at $1,030/ton. For PP Homo Raffia, the offers stand at $1,050/ton and there is no price comparison available as the producer did not offer this grade last week. However, according to SSESSMENTS.COM pricing database, the offers for Thai PP Homo Raffia to the Vietnam market have gone up as much as $120/ton compared to the offer level on May 27. “The offer is definitely too high and unworkable. As such, we think buyers’ response will be similar from last week and no buyers would be willing to make purchases,” the trader added.
