Local PP, PE prices move higher in Thailand

Players in Thailand reported that local producers raised their PP and PE offers to the market by THB1000/ton ($28/ton) this week.

A trader reported that demand is not doing well and sales dropped by 20% when compared to last year. “Nowadays, there is a conflict between buyers and sellers. Buyers think that demand towards their end products is quite frail and crude oil and monomer prices also softened. Hence, there are no factors to support the suppliers’ price increases in the market,” he said.

A converter stated, “Despite price hikes on a weekly basis, most of the done deals are similar to previous levels. A local producer has faced a problem on their HDPE production and will be able to provide materials next week, but PP supply is comfortable.” He also added that customers are cautious on their purchases because they feel the increases will not be sustainable since crude oil and monomer prices have softened.

Local PP prices currently stand at THB41500/ton ($1183/ton) for homo-PP raffia and at 42500/ton ($1212/ton) for homo-PP film, all on an FD Thailand, cash equivalent basis.

Local PE prices are now reported at THB47500-48000/ton ($1354-1369/ton) for LDPE film, at THB46000/ton ($1312/ton) for LLDPE c4 film and at THB45000/ton ($1283/ton) for HDPE film and at THB45500/ton ($1297/ton) for HDPE blow moulding all on an FD Thailand, cash equivalent basis.