PP hike attempts from sellers met resistance from buyers in SEA
A trader in Vietnam reported that a Saudi producer approached the Vietnamese market with increases of $20/ton at $1080/ton for PP raffia on CIF, cash basis to test the market reaction. However, they had to revise their offers down by $10/ton to $1070/ton as they saw resistance.
A converter in Ho Chi Minh confirmed receiving an offer from the Saudi producer at $1070/ton CIF Vietnam and commented ‘’Our Saudi supplier’s offer has softened by $10/ton compared to last week after the producer attempted to increase its PP offers. For now, buyers’ buy ideas or bids are at $1040/ton, but the producer is not able to accept as they don’t have much inventory on hand.’’
Similarly, a trader in Thailand informed that a Saudi producer attempted for $20/ton increases at $1070/ton. However, the producer did not receive any bids yet from customers.
In the import market, Chinese PP raffia is also being offered at $1070/ton CIF Vietnam, a trader reported. He said that it is not attractive to Vietnamese buyers because demand remains weak and this level is deemed too high. Converters still have inventory and they are not in a hurry to make fresh purchases. ”Buyers say they will only consider if offers are at $1040/ton or lower,” he added.
In Thailand’s domestic market, local producers raised their offers slightly to 39,000THB/ton ($1151/ton). A trader said ‘Distributors are still holding stocks for about 2000 - 3000 tons of PP previously purchased at 38,000THB/ton ($1121/ton). Even though local producers implemented slight hikes, distributors are still offering at 38,500THB/ton ($1136/ton).’’
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