As SSESSMENTS.COM noted, Thai buyers disheartened by pricing decision made by local PE and PP producers in the country. This week, a Thai trader received PP offers from two local producers. As compared to last week, offers for PP across all grades from both producers are THB500/ton ($15/ton) higher. The trader decided to skip procurements as demand in the domestic market remains sluggish. Additionally, customers’ buy idea is still lower than the offer received, at THB1,000/ton ($30/ton) lower for PP Homo Raffia and THB2,000/ton ($62/ton) lower for PP Homo Film.
For PE, the trader received offers for HDPE Film, LDPE Film and LLDPE Film C4 from another local producer at THB250/ton ($8/ton) lower from last week. However, the customers’ buy idea is still around THB27,000-27,500/ton ($832-847/ton)-level for HDPE Film and LLDPE Film C4. As such, the trader refrained from procuring materials citing that the offer is not attractive amid sour demand. The producer’s big customers also remain disincentivised and skipped purchases. While via another trader, the producer’s PE offer remains unchanged from a week earlier, yet the producer did not consider any bids from customers and insist on the initial offer levels. “No one is willing to purchase at the producer’s price list as most local traders are selling at much lower prices than the producer’s pricelist and they are willing to consider any firm bids from customers in order to move stock on hand,” the trader told SSESSMENTS.COM.
Speaking of import, the second trader received offers for US HDPE Film cargoes from a global trading house at $730-740/ton on LC at sight, CIF Thailand Main Port basis. However, the trader also skipped procurement, regarded the offers as unattractive for deep-sea cargoes. Overall, SSESSMENTS.COM was told that PE and PP demand in Thailand remains weak amid the Coronavirus outbreak.
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