A regional trader informed SSESSMENTS.COM that Southeast Asian PP producers recourse up to $100/ton discount to conclude deals. This week, the trader successfully conclude deals for Singaporean PP Block Copolymer at $90-100/ton lower than the initial offers, at $910-920/ton on LC at sight, CIF Australia basis. Likewise, deals for PP Block Copolymer from Malaysian PP producer concluded at $80/ton lower than the initial offers.
The trader opined that the current market situation would not improve within a month even if Russia and Saudi agree to limit crude oil production or if crude prices start to rebound. In Southeast Asia, buyers are not interested to take cargoes as most factories in the region are shut due to lockdowns such as in Malaysia, the Philippines and Vietnam. Moreover, the Thai government has imposed a curfew to contain the spread of coronavirus starting April 3; hence, the demand for crude oil and polymer products is expected to remain bearish onward, as stated to SSESSMENTS.COM.
