A regional trader discloses to SSESSMENTS.COM the reappearance of import offers for certain PP grade and the absence of PE offers. As of July 20, there are no fresh PE offers received yet from the leading Philippines producer. The trader assumes that the producer already sold out the allocation for August shipment since the company was asked to wait for September shipment offers. The trader also speculates that the allocation was most likely sold to the export market to chase sales in US Dollar denomination since the local currency is depreciating.
While for PP, SSESSMENTS.COM was told that the trader managed to sell PP Homo Film from a Vietnamese producer at $1,025/ton last week for prompt delivery. Although the offers were lower compared to the other Southeast Asian materials, buyers were already taking risks in purchasing materials of a total of 12 containers as the grade is new. Explained further, PP finished product will be sticky if the specification is incorrect. Last year, the producer also sold some volumes of the same grade, yet the response was unsatisfactory. Hence, the producer halted the production for this grade. This week, the producer offers the same grade at $25/ton higher from last week’s level, at $1,050/ton for August shipment. All offers on LC at sight, CIF Philippines Main Port Basis. Speaking of the market response, import offers are deemed less attractive as some traders are still selling the leading Philippines producer’s materials that previously bought at low prices. However, the trader opined that the cheap materials will be depleted by the end of this week; hence, higher prices expected to be more acceptable in the upcoming week.\
