As SSESSMENTS.COM noted, local PE and PP offers in Thailand posted further adjustments despite unimproved demand. As supply continues to lend a hand, coupled with support from firm feedstock prices, local PE and PP offers in Thailand market recorded a further increase of between THB1,000-2,000/ton ($32-64/ton) on a week-on-week comparison. A Thai PE producer increased offers for PE across all grades by THB1,000/ton ($32/ton) amid limited supply while the company is still focusing on clearing backlogs. Via a distributor, local PE offers are THB1,000/ton ($32/ton) higher from the producer’s price list. Similarly, a Thai PP producer adjusted up offers by THB1,500/ton ($48/ton) for film grade and THB2,000/ton ($64/ton) for non-film grades. Meanwhile, the producer’s offers for PP Homopolymers to Vietnam market remain stable from last week.
In contrast with the price trend, demand for both PE and PP resins in Thailand remains slow. A local distributor told SSESSMENTS.COM that the company has not received any bids from customers so far. The distributor is pessimistic about this week’s sales citing most converters are still sitting in high inventory and some are waiting for low-priced cargoes from previous purchases to arrive. For the outlook, the distributor expects tight domestic supply to ease by mid-July since pending orders for PE and PP cargoes from local producers’ end is expected to be cleared by that time.
