Local PP prices dip to fresh lows in Thailand, Vietnam
Inside Vietnam, PP raffia prices posted further declines of VND500,000-900,000/ton ($23-41/ton) on the week to be reported in the range of VND21,600,000-23,000,000/ton ($885-943/ton without VAT) FD Vietnam, cash inc VAT. A converter operating in the packaging sector said, “We are buying on an as needed basis due to the approaching year-end as well as weak demand and we have enough material to cover our needs now. We do not want to keep our inventory levels high before the Chinese New Year and we are planning to replenish our stocks around the end of January.”
A trader also complained of disappointing demand, adding, “We do not prefer to source materials from the import market these days as it is too risky because of the ongoing bearish trend in prices. We only buy from other traders and buyers refrain from purchasing beyond their needs.”
In Thailand, overall local homo-PP raffia and injection offers witnessed additional decreases of around THB500-1000/ton ($14-28/ton) over the past week due to buyers’ expectations of seeing further declines amid sufficient supply and limited market activities stemming from approaching holidays.
A distributor commented, “Activity is winding down ahead of the year-end and we believe that sufficient supply and weaker import prices will maintain downward pressure on the market in the days ahead. We are receiving offers at THB36500-37000/ton ($1010-1024/ton) FD now and we think prices will come down to around THB35000-36000/ton ($969-996/ton) soon.”
“Currently, most buyers in the local market prefer to source material on a hand to mouth basis as they expect to see further declines in prices. Our customers are not placing many bids,” commented a trader.
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