SE Asia’s import homo-PP market sinks to 3-and-a-half year low
Prices down 7% since late Sep
Homo-PP raffia prices on CIF SEA basis have been declining since a short-lived rebound occurred in September. Over this period of time, the weekly average of prices has posted a cumulative decrease of 7% or $80/ton as can be observed in the graph below.
Expectations of further price cuts keep demand subdued
Regional players continued to blame the persistently weak state of demand for consecutive losses in price levels amid a lack of supply issues.
An Indonesian converter said, “We are limiting our purchases according our needs as prices keep moving lower. PP raffia offers for Saudi origins are down $30/ton from last week.”
A few traders in Vietnam also noted, “Buyers are cautious about making fresh purchases, believing that further price cuts are still possible. They secure their urgent needs from the local market.”
Lower import offers drag down local markets
The ongoing downtrend in the import market has weighed on local prices across the region. In Vietnam, Indonesia and Thailand, local homo-PP offers extended their losses into this week.
An agent of a Thai producer reported that their supplier applied additional weekly decreases of THB1000/ton ($33/ton) on their local homo-PP offers this week. “Lower import prices combined with thin buying interest have pushed the local market lower. Trading activities are lackluster amid slow economic conditions. We think that the market will remain quiet until the year-end,” he commented.
Local markets also see their lowest since 2016
Following the latest round of declines, the weekly averages of PP raffia prices on FD Thailand/Indonesia basis reached their lowest level since February 2016, according to ChemOrbis Price Index.
Vietnam’s local homo-PP market, meanwhile, has recently hit a three-year low, data also reveal.
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