SE Asian players: PP supplies are comfortable despite lack of Mid-East origins

Players in Southeast Asia reported that overall PP supplies across the region are comfortable although offers from the Middle East have been limited. Several players reported that they are yet to receive any new offers from the Middle East while more supply limitations are expected by the year-end given maintenance shutdowns in that region.

In Thailand, where market activities have gradually slowed down in line with the late king’s cremation ceremony to take place on October 25-29, a converter noted, “We have not received offers from some Saudi producers since September.”

In Indonesia, a converter noted, “We heard that a Saudi producer will have a planned PP maintenance late this year, probably in November. We have not received their new PP offers and we think allocation from the region will be limited by the end of this year in the midst of shutdowns in the Middle East.”

Despite the lack of Middle Eastern cargoes, a trader reported that an Indonesian producer will restart its PP plants by next week after a maintenance shutdown started in September.

In Vietnam, an agent of a Taiwanese producer also reported that supplies from Taiwan are quite comfortable. “We think prices will soften in the days ahead as supplies are normal while demand remains unresponsive,” he added.

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