Following the recent price adjustment, a Thai trader predicts the sustainability of current PE and PP price trend. Supported by the limited supply, SSESSMENTS.COM was informed that the offers for PP Homo Film, PP Homo Injection, and PP Homo Raffia from a local producer to traders/agents were adjusted higher by THB2,000/ton ($63/ton) from last week. While to end-users, the offers are THB1,000/ton ($31.5/ton) higher compared to the agents. The trader stated that the response is cold and buyers are even reluctant to submit bids. Moreover, converters are not in a rush to make procurement as the demand for finished products remains slow.
Likewise, the trader revealed to SSESSMENTS.COM that the offers for HDPE Film and LLDPE Film C4 from another local producer were also adjusted higher by THB500/ton ($16/ton) compared to last week. While for LDPE Film grade, the offers were kept stable compared to the same period. As explained, the upward adjustments were supported the limited availability of materials as the producer still has some backlogs to clear. The trader assumes that some traders would be offering at a lower price than the producer to move the cargoes smoothly.
Following the increases, the trader opined to SSESSMENTS.COM that buyers will only make procurement for a small quantity. “We opined that the offers would remain firm for the next two or three weeks supported by the limited supply and firmer monomer prices. However, local producers will most likely announce promotional price again once their inventory starts to build up,” the trader added.
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