Zilch Activity Observed In Southeast Asia PP Market As Buyers Showed Resistance Towards Price Adjustments
- Zilch activities in Southeast Asia PP market amid Eid Al-Fitr holiday
- Price movement captured in Thailand market
- Pricing outlook is not bright in the near future
Southeast Asia PP market was not active earlier this week. A local distributor informed SSESSMENTS.COM regarding the latest offer from Thai PP producers. For PP this week, all of the suppliers announced offer at THB30,000/ton ($939/ton) for PP Homo Injection and PP Homo Raffia and THB31,000/ton ($970/ton) for PP Homo Film. Local offers were captured at THB500-1,000/ton ($15-31/ton) higher compared to last week. Producers told the distributor that they have tight supply, especially for film grade; which is why the price gap between film and other PP grades is getting wider. Last week, the price gap was only THB500/ton ($15/ton); while this week it is THB1,000/ton ($31/ton). All offers are on cash, FD Thailand basis and excluding 7% VAT. SSESSMENTS.COM also noted that local PP Homopolymer prices in Malaysia remain stable on a weekly comparison. Detailed information for Vietnam market is available here.
Market activities in Southeast Asia remain bare amid Eid Al-Fitr holiday. Market players in Malaysia stopping their activities with the government set Eid holidays during the first two days of the week, while the Philippines take a break on Monday, May 25. From Thailand, suppliers reported that customers were showing resistance towards the latest price adjustments as most had placed orders last week. SSESSMENTS.COM also noted that the leading Indian petrochemical producer will reduce its export allocation to the export market, including Southeast Asia, as the company will focus on selling to domestic supply after lockdown relaxations.
Thai market participants shared with SSESSMENTS.COM that pricing outlook for PP market would not be bright in the near term as orders for the end products continue to be affected by the Coronavirus pandemic. The supplier also doubts if the uptrend could sustain and predict local PP prices might eventually go down again in June.
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