Several Factors Still Hinder Southeast Asian Buyers From Replenishing PP Inventory
- A local PP producer in Malaysia announced August delivery offers with adjustments
- Overall PP demand in Southeast Asia remains on a soft note this week
- PP demand in the Philippines will only reach peak season nearing Christmas
As informed to SSESSMENTS.COM, several factors still hinder Southeast Asian buyers from replenishing PP inventory. This week, local PP offers in Thailand and the Philippines captured stable on the weekly comparison. In the Philippines, local PP Homo Raffia offers remained stable from last week, stand at PHP64,000-65,000/ton ($1,299-1,320/ton) on cash, FD Philippines basis and including 12% VAT. While for PP Homo Film, no further adjustments were recorded this week after the leading Philippines polyolefins producer applied an upward adjustment of PHP1,000/ton ($20/ton) on local PP Homo Film prices in the previous week. Likewise, in Thailand, offers for PP Homo Raffia were unchanged after local producers in Thailand decided to increase PP Homo Raffia offers by THB2,000/ton ($63/ton) at the end of last week. Meanwhile, a local PP producer in Malaysia announced August delivery offers with an upward adjustment of between MYR180-200/ton ($42-47/ton) depending on the grades compared to July delivery offers. In the import market, deals for Vietnamese PP Homo Raffia cargoes to Philippines market concluded at the same level to the initial offers at $990/ton on LC at sight, CFR Philippines main port basis. Detailed information for Indonesia and Vietnam market is available in WeeklySSESSMENTS of the respective countries.
Overall PP demand in Southeast Asia remains on a soft note this week. Sufficient inventory on-hand and slow digestion for the finished products still hinder buyers from replenishing materials. More added by a trader, even though the company managed to sell around 15-20 containers to several countries in the region recently, the trader believes that after these procurements, buyers would not purchase more materials. On the supply side, no significant issue was reported to SSESSMENTS.COM.
For the outlook, market players believe that the chance for local PP prices to increase is slim since slow PP demand is expected to persist. Additionally, Philippines market players opined that PP demand in the country will only reach its peak season nearing Christmas, as stated to SSESSMENTS.COM.
