As told to SSESSMENTS.COM, several Southeast Asian PP producers started selling cargoes to the region aggressively by providing hefty discounts. Early this week, deals for regional PP Homo Raffia cargoes were still captured above $1,000/ton-level, precisely at $1,015/ton on LC at sight, CIF Indonesia Main Port basis for cargoes of Thailand origin. However, as the week progressed, deal levels for PP Homo Raffia cargoes started to go down since the suppliers were willing to give hefty discounts to boost sales.
On July 29, a trader-based in Thailand reportedly sold PP Homo Raffia cargoes of a Thai PP producer at $960-970/ton to big players in Southeast Asia. The trader revealed that such a level was $30-40/ton lower compared to the offers available last week. Despite the price reduction, the trader noted that most buyers are still taking a wait-and-see stance. On the same day, SSESSMENTS.COM data showed that deals for PP Homo Raffia cargoes from a Vietnamese producer also recorded below $1,000/ton-level, at $990/ton to Indonesia and Philippines market.
Coming to July 30, the Thai PP producer becomes more aggressive in offering materials; willing to sell at $950/ton or $85/ton lower from the initial level. However, a converter who received the offers was not convinced to make purchases amid many uncertainties in the market. Whereas in Indonesia, a trader attempted to place bids for import PP Homo Raffia cargoes of Vietnam origin at $920/ton, which is offered by the supplier at $70/ton lower than last week’s level at $940/ton. Since the supplier could not move cargoes at such a level, the bids were rejected. As SSESSMENTS.COM noted, all import offers are on LC at sight, CIF/CFR Main Port basis.
Looking ahead, market players foresee the downtrend in import PP prices will prolong since the current levels still largely fail to stimulate buying sentiment. Majority of Southeast Asian market players contacted by SSESSMENTS.COM are pessimistic for the near-term pricing outlook as buyers remain disincentivized despite price reductions and hefty discounts, citing buying import cargoes at the moment is too risky.
