- Middle East origin $920-960/ton
- Far East Asia origin $950-1,000/ton
- Southeast Asia origin $990-1,030/ton
Comments by market players on PP Homo Raffia market as follows:
A Malaysian polyolefins producer contacted by SSESSMENTS.COM on July 16 said, “On July 15, we have announced August shipment offers for PP Homo Raffia to Vietnam and Philippines market with an upward adjustment of $100/ton compared to July shipment. As such, we do not know how the overall response from the customers yet as the offers have just been announced. However, we think that there is a possibility for Vietnamese buyers to ask for $980/ton-level as the current offers at $1,020/ton on LC at sight, CIF Vietnam Main Port basis will most likely be deemed unworkable. Moreover, PP demand in the Southeast Asia market is relatively weak. Pertaining to the outlook, we are unsure of the sustainability of the current price trend since supply in the market is getting better. Yet, the offers for August shipment will most likely remain firm and downward adjustment might be seen for September shipment offers.”
“Following the price increases in the local market, the offers for Vietnamese PP Homo Raffia to Indonesia market were recorded stable to slightly higher by $10/ton. Despite the increment, buyers’ response remains lukewarm. Since last week, we have not received any bids from the buyers as most of them only asked for the price level and were no longer interested once they heard the offers. Moreover, buyers prefer to source local materials due to competitive offers. In addition to that, PP demand in Indonesia is still slow amid slow sales for finished products. As of recent, end-users are still being careful about their spending, leading to a hand-to-mouth basis procurement on converters’ end. Looking ahead, we prefer to only monitor the market movement due to market volatility. While for the demand, we think that it will most likely remain stagnant at the current level in the near term as the preparation for Eid Al-Adha predicted to have limited impact on the demand,” a regional trader commented.
A Middle Eastern producer informed SSESSMENTS.COM that, “For the week commencing July 13, PP market in Southeast Asia is rather quiet as most producers have sold out July shipment allocation and yet to release offers for August shipment. As such, most customers prefer to wait for more offers to be announced to find the most competitive prices. In our opinion, August shipment offers will remain stable or slightly higher. Although the supply condition is getting better, it could not be considered as ample yet. Moreover, the firm prices for PP Fiber grades will prop up the offers for the other PP grades. Hence, producers would not be willing to sell at a low level.”
Similarly, a Thai producer also revealed that “PP demand in Southeast Asia is rather flat as most customers already have sufficient inventory on hand. While for the outlook, our company predicts that PP prices will most likely remain stable in the near term. In the production sector, our PP plants are currently running at a normal production rate.”
