- Indian Subcontinent origin $900-930/ton
- Middle East origin $920-950/ton
- Southeast Asia origin $920-960/ton
Comments by market players on PP Homo Raffia market as follows:
At the beginning of the week, an Indonesian trader stated, “At the moment, most Middle Eastern PP producers are offering PP Homo Raffia at above $900/ton-level. From our end, we are selling Middle Eastern PP Homo Raffia between $920-930/ton on LC at sight, CIF Indonesia main port basis. This level is relatively stable as compared to last week’s level. However, compared to a fortnight ago it increased between $40-50/ton. Likewise, Indian PP Homo Raffia is also available at the same level, between $920-930/ton with the same payment and shipment term. For South Korean PP Homo Raffia cargoes, the materials are not available in the market due to maintenance shutdown at the producer’s end.”
One of Middle Eastern polyolefins producers contacted by SSESSMENTS.COM on June 15 revealed, “We have not announced our offers for July shipment to the Southeast Asia market. The announcement would be released between June 20 to June 25. Talking about Southeast Asia market, PP prices in the market are firm, however, the actual demand is not that strong.”
A Vietnamese trader informed, “Offers for PP Homo Raffia of Malaysia origin have increased by $20/ton from last week’s level following the firm feedstock prices. Malaysian PP Homo Raffia cargoes are available at $940/ton on LC at sight, CIF Vietnam main port basis. We also received import PP Homo Raffia offers from Indian producers, between $900-920/ton with the same payment and shipment term. However, buyers were showing limited interest towards Indian cargoes as most of them are expecting prices at below $900/ton-level. Besides, Indian cargoes frequently experience shipment delays which discourage buyers from purchasing this cargo. Even last week, we could not sell any volume of PP cargoes from the leading Indian petrochemical producer.”
“One of the PP producers in Thailand has increased local PP Homo Raffia offers by THB500/ton ($16/ton) as compared to last week’s level. The producer found the confidence to adjust up the offers as supply at producer’s end remains limited. Besides, market talks have it that another PP producer in the country experiences issues at their cracker. However, we deemed the offers are too high and unworkable. Only small-scale converters are willing to procure at this level. While for big converters, they are still having sufficient inventory on-hand. Added to that, demand for the end-products have not shown any noticeable improvement from a week ago. Hence, big converters are not in a hurry to replenish their stock and show resistance towards high prices,” a Thai trader told SSESSMENTS.COM.
A Malaysian converter commented, “We have not made any procurements for July shipment yet, seems like we would skip purchases for July shipment. At the moment, we focus on delivering the materials from the old orders. We received a limited amount of new orders. The recovery process in the export market is quite slow. While for the domestic market, demand has started to improve.”
A regional trader in the Philippines revealed, “We received a lot of inquiries for PP Homo Raffia, however, we have limited supply for this material. Added to that, customers’ acceptable prices are below $1,000/ton-level. As such, we only managed to conclude the deals for Vietnamese PP Homo Raffia cargoes at $960/ton on LC at sight, CIF Philippines main port basis. Currently, one of Vietnamese PP producers focuses on selling to the China market while another producer focuses on catering to demand in the domestic market. Hence, allocation from Vietnamese PP producers to the Southeast Asia market is limited.”
