Aggressive homo-PP offers from Thai producer to SEA

Following the overseas producers’ lower offers for June, regional producers have also been approaching the regional markets with decreases. A Thai producer’s June offers have shown up recently at quite aggressive levels as Southeast Asian market is silent nowadays in terms of demand due to monsoon season, the month of Ramadan along with the low season for PP.

The Thai producer’s offers to the region for raffia are standing at $1050-1060/ton CIF SEA, cash basis. These levels are almost at par with dutiable Middle Eastern origins, which are reported at $1040-1070/ton CIF SEA. It is an atypical case as the duty-free regional offers traditionally carry a premium over dutiable Middle Eastern and other overseas origins.

A Malaysian producer also sold raffia to Vietnam, Indonesia and Philippines at $1080-1090/ton CIF after stepping back from its initial offers by $40-50/ton due to a lack of demand “After we revised our offers down, the number of inquiries we received increased and we have managed to conclude some deals with additional discounts. Plus, customers are mostly expecting PP offers from regional suppliers to fall further to $1050/ton as well since a Thai producer concluded deals at this level,” a source from the producer commented.