As SSESSMENTS.COM noted, South Korean PP offers surfaced in the Asia market with dramatic changes while buyers threw tedious responses toward the offers. This week, July shipment offers for PP across different grades from South Korean suppliers to China and Southeast Asia market surfaced with a hefty adjustment. To the China market, a South Korean producer is offering PP Block Copolymer and PP Random Copolymer Extrusion cargoes at $100/ton higher than last month’s levels. Response from Chinese buyers is rather cold; most converters in the country are on a cautious stance and are keeping their inventory as lean as possible due to the low season for finished products sales.
Likewise, in the Indonesia market, a converter received offers for South Korean PP Block Copolymer cargoes at $950-960/ton on LC at sight, CIF Main Port basis, or $100/ton higher than a month earlier. The converter decided to proceed with the procurement and deals could only be closed at the initial offer level since the producer is not providing room for negotiation. The converter informed SSESSMENTS.COM that the shipment will be by the end of July. Previously, the converter asked for an early July shipment but rejected by the producer as the materials from the producer’s had been fully booked.
Moving to the Vietnam market, SSESSMENTS.COM was told that a trader also received July shipment offers for PP Homo Injection and PP Homo Raffia of South Korea origin at $940/ton on LC at sight, CIF Main Port basis, or between $70-80/ton higher on a monthly comparison. However, Vietnamese buyers are reluctant toward high prices. Besides, most buyers now prefer local materials as the prices are considered more attractive.
