A Thai distributor disclosed to SSESSMENTS.COM the local producers’ strategies to move PE and PP cargoes. Compared to last week, the offers for PE cargoes across all grades from a Thai PE producer are higher by THB1,000/ton ($31/ton). Likewise, the offers for PP Homo Film, PP Homo Injection, and PP Homo Raffia from the local producers increased by THB1,500/ton ($46/ton) compared to the same period. The distributor stated that producers do not have inventory pressure at the moment as managed to move a big quantity to both domestic and export market in the previous week. Hence, the producers initiated upward price adjustments this week. For PE, the producer claimed that the company sold a lot of quantities to China market last week. While for PP, the local producers were announcing a promotional price last week, which required procurement with minimum quantities of between 300-600 tons.
Following the increases in local PE and PP prices, customers prefer the sideline position while some others cited already bought some quantity in the previous week when prices were low. Hence, no deals concluded so far. “We think that the uptrend will only sustain for around two weeks. Once the producers’ inventory starts to pile up again, the offers will be adjusted downward. Moreover, the demand is generally weak due to Coronavirus pandemic,” the distributor added to SSESSMENTS.COM.
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