- Indian Subcontinent origin $820-860/ton
- Middle East origin $820-860/ton
- Southeast Asia origin $850-885/ton
Comments by market players on PP Homo Raffia as follows:
“In early May, most converters in Myanmar started to check market prices after being away from the market during April. At that moment, most of the converters were shocked to hear the prices increased significantly from April. Particularly for PP Homo Raffia, the offers for Middle Eastern cargoes were hiked from $810-830/ton in late April to $850-860/ton in early May. All offers on LC at sight, CIF Myanmar Main Port basis. Due to this, converters that previously planned to make purchases decided to delay the procurement and adopt a wait-and-see stance. Besides, they believe that finished product demand is traditionally slow in June-July due to the rainy season and unsure that these higher prices will sustain as the outlook remains pessimistic owing to the impact of Coronavirus pandemic towards the economy,” a Myanmar trader commented.
“This week, a Malaysian polyolefins producer has announced June shipment offers to the Southeast Asia market. As compared to May shipment, the offers for PP Homo Raffia were adjusted up by $10/ton. From other origins, we received offers for PP Homo Raffia of Saudi origin at $20/ton higher from a week earlier. We also heard that another Saudi producer trimmed their offers by the same amount but the level is lower,” a Vietnamese trader reported to SSESSMENTS.COM.
A global trading house contacted by SSESSMENTS.COM on May 12 stated, “We currently offer PP Homo Raffia cargoes of Middle East origin at $830/ton on LC at sight, CIF Indonesia Main Port basis, but obtained a cold response from buyers. There are no deals concluded so far and most buyers only expressed their buy idea at $740-745/ton on the same payment and delivery terms, which is too low. Due to this, we decided to divert our cargoes to Vietnam and now the cargoes have been sold out to the Vietnam market. As such, we no longer have allocation for Middle Eastern cargoes to the Indonesia market.”
“This week, we received import offers for PP Homo Raffia of India origin at $40/ton higher than last week’s level. For Southeast Asian cargoes, last week, we received offers for PP Homo Raffia from a Thai PP producer at $860/ton on LC at sight, CIF Vietnam Main Port basis but have yet to receive any fresh offers from the Thai producer this week. At the moment, buyers’ acceptance level remains low even though the offers are already on an uptrend. Buyers’ acceptance level for import cargoes mostly at $30-50/ton lower from the initial offer levels,” a trader based in Vietnam reported on May 13.
“This week, we received PP Homo Raffia offers from a Thai PP producer at $5-10/ton higher than last week’s level; we were told that the producer is quoting high prices because of limited allocation for this week. At the same time, we also received import offers for PP Homo Raffia from a Saudi producer at $10/ton lower on the low-end of the price range available a week earlier. Meanwhile, offers for PP Homo Raffia from another Saudi producer at $850/ton on LC at sight, CIF Vietnam Main Port basis were deemed too high. Likewise, the offers for PP Homo Raffia of South Africa origin at $790/ton on the same payment and delivery term are considered less appealing due to long lead time. Considering the unattractive offers, we decided not to place any orders this week. By June, we believe that we can still get Middle Eastern cargoes at below $800/ton-level; hence, we prefer to adopt a wait-and-see stance at the moment,” a Vietnamese converter said to SSESSMENTS.COM.
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