PP markets firm up in Southeast Asia ahead of maintenance shutdowns
This week a Thai producer implemented smaller hikes of $10/ton on their PP offers to Indonesia from last week while another Southeast Asian producer announced their February PP prices to the regional markets with increases of $20/ton when compared to their January levels, except for PP block copolymer injection which was up by $30/ton.
In addition, higher levels have also been reported in the local markets. An Indonesian producer lifted their prices to its local market for PP film by IDR140,000/ton ($10/ton), PP raffia and injection by IDR130,000/ton ($9/ton) while BOPP and PP coating remained stable from their most recent levels.
Looking at the supportive factors for the new price increases, Indonesia’s Polytama Propindo shut its plant for a turnaround while Indonesia’s Pertamina, Thailand’s HMC and IRPC and Malaysia’s Lotte Chemical Titan are also mulling maintenance shutdowns at their plant in the upcoming three months.
The other firming factor is higher spot propylene costs in the region which have been on a firm note since early November, according to weekly average prices on ChemOrbis Price Wizard.
A trader in Vietnam reported that demand for PP is not bad nowadays and players are still interested in making further purchases. Another trader reported firmer expectations for the post-holiday period.
However, a player opined that buyers showed resistance to larger increases for February, which is justified by the modest hike attempt by the Southeast Asian producer.
PP players are now gauging the period after the Chinese New Year holidays while also monitoring the production updates from the Mid-Eastern producers. Recently, Reuters reported that Saudi PetroRabigh restarted its petrochemical complex at Rabigh last Sunday following a brief shutdown.
To see further details about the most updated news of new capacities as well as shutdowns and restarts around the globe at a glance, please follow ChemOrbis PP Production news .
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