- Indian Subcontinent origin $845-900/ton
- Middle East origin $880/ton
- Southeast Asia origin $810-880/ton
Comments by market players on PP Homo Raffia market as follows:
The leading polyolefins producer in the Philippines disclosed, “At the moment, we are working from home as the government has implemented a lockdown scenario. However, it is not affecting the operations of our plants. All plants are running at maximum capacity so far.”
A regional trader contacted by SSESSMENTS.COM’s team on March 23 commented, “Market talks have it that Indonesian PP Homo Raffia cargoes sold to Vietnam market at $825/ton on LC at sight, CIF Vietnam main port basis.
A China-based trader contacted by SSESSMENTS.COM on March 24 revealed, “This week, we purchased PP Homo Raffia from the leading Indonesian polyolefins producer for the Vietnam market at $810/ton on LC at sight, CIF Vietnam main port basis. To our customers, we are offering at $825/ton on the same payment and delivery term. However, the response was not that positive as most customers are holding sufficient stocks on hand.”
A trader in Thailand contacted by SSESSMENTS.COM stated, “Local offers for PP Homo Raffia from one of the PP producers in the country remain stable over the week. However, deals can be only concluded at a similar level to the cost of production at THB30,500/ton ($935/ton) on cash, FD Thailand basis and excluding 7% VAT, buyers were not willing to accept higher than that. Other than that, the government has declared national curfew effective from March 25. All the citizens have to finish their activities outside the house before 6 pm. As such, it will surely affect the logistics.”
“Export PP Homo Raffia offers from a Thai PP producer to the Vietnam market decreased by $20/ton as compared to last week’s level. At the moment, the offers stand at $900/ton on LC at sight, CIF Vietnam main port basis. Bids submitted at $20/ton lower than the initial offer level were rejected by the producer. Deals were eventually concluded at $5/ton lower than the initial offer,” said a Thai trader on March 25.
“Offers for Vietnamese PP Homo Raffia cargoes to Indonesia has declined significantly. As compared to last week’s level, the offers have decreased between $50-60/ton. Despite the significant reduction, only a few deals that have been concluded, it was even below the initial offer level. Buyers tend to procure on a hand-to-mouth basis as they predict the offers would decrease further. Besides, most manufacturers are operating at a lower rate due to the Coronavirus outbreak. In the days to come, we think it is possible to see offers for import PP Homo Raffia at $800/ton-level amid the current market situation,” stated a regional trader to SSESSMENTS.COM.
