Local PP Prices In Southeast Asian Countries Adjusted Further, Thailand And Philippines An Exception
- There were not many import PP offers this week
- PP demand in Southeast Asian countries is slow
- Significant improvements in demand are not likely to be observed in the near future
SSESSMENTS.COM noted that local PP prices in Southeast Asian countries were adjusted further, with Thailand and Philippines as an exception. After continuous increases in the last couple of weeks, local PP prices in Thailand stabilized in the week commencing June 30. Offers for PP Homo Film, PP Homo Injection and PP Homo Raffia from a local producer remain at last week’s levels. In the Philippines, PP Homo Raffia offers from the leading polyolefins producer in the country were adjusted up by PHP3,000/ton ($60/ton) on June 25 compared to offers surfaced on June 23. Market players in the Philippines mentioned that the reason for the adjustments from the producer was the increments in import PP prices. As for this week, no further adjustments were applied on local PP offers in the Philippines.
Meanwhile, July delivery offers from a Malaysian producer were also recorded higher. On a monthly comparison, offers for PP Homopolymer grades from the producer went up by MYR320/ton ($75/ton) while offers for PP Block Copolymer and PP PP Random Copolymer Extrusion increased by MYR280/ton ($65/ton). From the import market, market players reported that offers for PP were scarce. Deals for PP Homo Film of Thailand origin were concluded at $1,000/ton on LC at sight, CIF Philippines main port basis or $20/ton lower than the initial offer level. Detailed information for Indonesia and Vietnam market is available in WeeklySSESSMENTS of the respective countries.
Pertaining to demand, market players informed SSESSMENTS.COM that demand for PP in the region is slow. Buyers only purchase materials on a need basis and show resistance on high offers. Moreover, demand for the end product remains sluggish. On the supply side, market players in Thailand informed that supply for PP in the country is now sufficient. No more issues for both PP Homo Raffia and PP Homo Film. On the other hand, tight supply was reported for all PP grades from a Malaysian producer.
Some market players opined to SSESSMENTS.COM that PP prices in the region will remain firm due to support from high feedstock cost. However, some market players, particularly in Thailand, believe that there will be some decrements in PP prices in the near future. Some even predict that Thai PP producers will give promotional discounts this week considering cold responses on the current high offers. As for demand, the players do not expect to see significant improvement in PP demand in the near term.
