SSESSMENTS.COM noted that Southeast Asian PP producers gain confidence as the China market perks up. PP producers in the region attempted to increase offers for PP Homo Raffia, not only to China but also to Southeast Asian countries. SSESSMENTS.COM was informed that a Thai PP producer adjusted up offers for the grade to Vietnam between $40-60/ton on a weekly comparison. Currently, the producer’s offers stand at $810/ton on LC at sight, CIF Vietnam main port basis. However, demand for PP in the country has not improved yet. In Indonesia, buyers still managed to conclude deals for Thai PP Homo Film at $750/ton on LC at sight, CIF Indonesia main port basis for a limited volume. However, when buyers requested for more cargoes, the supplier rejected citing a limited supply.
In the China market, PP offers from Southeast Asia were also recorded higher week-over-week. A Chinese trader reported to SSESSMENTS.COM on purchasing PP Homo Raffia from the leading Indonesian polyolefins producer at $110/ton higher than the last deal level. The trader previously concluded deals with the producer at $760/ton on LC at sight, CIF China main port basis on March 25. Beside PP Homo Raffia, the trader also recently purchased PP Homo Fiber from the same producer. The trader mentioned that all transactions were for June shipment.
Another Chinese trader informed SSESSMENTS.COM that three-digit upward adjustments were also applied on PP Homo Raffia of Vietnam origin. According to the trader, the increases were between $150-160/ton from last week’s level. “Speculation in the China PP market is high now,” the trader said.
