A Thai trader reported to SSESSMENTS.COM that local PE and PP prices in Thailand have broken a threshold level and predicted to reach a new low in the near term. Compared to a week earlier, local offers for HDPE Film, LLDPE Film C4, PP Homo Film, and PP Homo Injection from a Thai polyolefins producer decreased by THB1,000/ton ($30.5/ton). Additionally, the trader added that if customers submitted firm bids, the producer is willing to sell lower than the initial offer levels. However, there is no improvement captured in terms of sales so far as buying sentiment remains weak.
The trader stated that there is a big gap between import and local offers. Moreover, the demand for the finished product is affected by the Coronavirus issues as citizens are obliged to stay at home unless for working and buying daily necessities. Hence, sales for finished products are terrible. Further added, Phuket has announced total lockdown while for other provinces, the local government only encourages citizens to stay at home. “Considering the current situation, it is possible for PE and PP prices to reach THB24,000-25,000/ton ($734-764/ton)-level in the days to come,” the trader opined to SSESSMENTS.COM.
