A Thai trader opined to SSESSMENTS.COM that PP demand in Thailand is predicted to nosedive in the near term and the gloomy outlook to last up to several months ahead. The trader explained that currently, demand for PP in Thailand is weak and only supported by orders from converters that need to clear backlogs for sales since March or before the coronavirus-related lockdown was imposed. When the backlogs are cleared, demand for both PP resins and end-products are expected to fall around 50% from the current demand. “Demand is going to be very slow as the market is still severely affected by COVID-19 outbreak. One of the biggest converters using PP Homo Injection used to have 1,500 employees, but now they have less than 300. The Thailand PP market will be dull for the next three to six months,” the trader said.
Pertaining to local offers, the trader informed SSESSMENTS.COM that the company had not purchased any PP cargoes for the last two months taking into account the weak demand and not to mention the limited supply from local suppliers. However, the trader heard that offers for local PP Homo Film stood at THB35,000/ton ($1,007/ton) while offers for local PP Homo Raffia and PP Homo Injection were at THB34,500/ton ($993/ton) on cash, FD Thailand basis and excluding 7% VAT. The trader opined that the offer levels were too high.
