A Vietnamese converter delays procurement considering the possibility for further PP price adjustment, SSESSMENTS.COM was told. The offer received for Indonesian PP Homo Raffia cargoes on FOB basis is available at $790/ton. While on CIF basis, the offers available at $800-810/ton. All offers are on LC at sight. However, the supplier stated that the number of purchases should be around 1,000 tons in order to get cargoes at those levels. So far, the converter has not decided to make procurement yet as PP prices predicted to remain soft onwards. Hence, the converter is not in a rush to secure some volume.
As stated to SSESSMENTS.COM, the converter’s sales are slowing down and its operating rate is cut by 15-20%. “We think that the outlook remains pessimistic as many countries have announced lockdown to reduce the spreading of Coronavirus. Hence, PP prices will remain soft onwards,” the converter added.
