PP Prices In Southeast Asia Expected To Maintain The Current Trend, Demand Has Yet To Follow
- Adjustment captured in local PP prices in Thailand
- Import PP offers for regional cargoes move in tandem with Middle East origin
- Price adjustment pushed buyers to the sidelines
Southeast Asia PP market participants opined to SSESSMENTS.COM that PP prices will maintain the current trend in the future, however, demand has yet to follow. On the week commencing June 1, PP prices within Southeast Asia market reported stable to firmer. Stable offers reported from Malaysia and the Philippines market. While in Thailand, local PP producers in the country adjusted up the offers between THB1,000-2,000/ton ($32-63/ton) as compared to last week’s level. The producer claimed that the limited supply, especially for PP Homopolymers was the major ground behind the upward price adjustment. In the import market, Thai suppliers offered PP Homo Raffia to the Southeast Asia market at above $900/ton-level as supported by firmer feedstock prices and the limited supply. Likewise, Middle Eastern PP Homo Raffia cargoes to Myanmar increased between $15-20/ton from last week, standing between $860-880/ton on LC at sight, CIF Myanmar main port basis. For Indian cargoes, import PP Homo Film to Thailand captured at $890/ton on LC at sight, CIF Thailand main port basis. Detailed information for Indonesia and Vietnam market is available in WeeklySSESSMENTS of the respective countries.
Demand for PP resins within the Southeast Asia market reported still slow. The significant upward price adjustment from Thailand PP producers pushed buyers on the sidelines. SSESSMENTS.COM was told that no buyers are willing to submit bids ever since the producer announced the fresh offers. At the moment, converters are not in a hurry to make procurement since demand for the end products is not viable. Likewise, demand in the Philippines is still slow this week but expected to gradually improve onwards as Metro Manila as the centre of business in the country, is already under General Community Quarantine as of June 1. On the production front, Thailand’s IRPC will shut its 225,000 ton/year PP plant no. 3 on June 12 for fifteen days maintenance. Afterwards, the producer will conduct maintenance shutdown at its 160,000 ton/year PP plant no. 4 for thirty days.
Looking ahead, the majority of Southeast Asian market players predict that import and local PP prices will be stable to firm on the back of firmer feedstock prices. However, positive movement in prices is predicted not to be followed by good demand for resins considering the slow sales for end-products, as stated to SSESSMENTS.COM.
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