Demand for PP in Thailand market reflects the condition of the industries ravaged by COVID-19. A trader informed SSESSMENTS.COM that this week offers for PP Homo Film are at THB35,000/ton ($1,111/ton), while both PP Homo Injection and PP Homo Raffia at THB34,000/ton ($1,080/ton) on cash, FD Thailand basis and excluding 7% VAT. Offers for PP Homopolymers grades show an increase of THB1,000/ton ($31/ton) from last week's offers. To the export market, Thai PP producers set prices to Vietnam market at $1,000/ton on LC at sight, CIF Main Port basis, up by $50/ton from last week’s offers.
The increase, according to the trader, is caused by a shortage of supply on the producers' side due to maintenance and backlogs. Customers in the domestic and export market also show resistance towards the latest offers from the producers. While traders no longer dare to sell at levels far below the producer’s offer, customers are also not in a hurry to buy. Converters have sufficient inventory as most factories are reduced their operation or only running four days per week at maximum, per trader reports to SSESSMENTS.COM.
Outlook for Thailand market this week remains cloudy amid low consumption of PP resins, only reaching 60% as trader stated. Demand for end-products is still not recovering, especially household products since people prioritize essential needs. SSESSMENTS.COM also noted that Thai automotive requirements got caught by the shift of production centres from their countries to Vietnam, which impacted PP resins absorption.
