Stronger dollar pushes SE Asian PP sellers to seek increases
In Thailand, a trader reported that local producers lifted their PP prices due to ongoing currency issues and tight local supplies. “Some domestic producers are still experiencing production issues for PP. We heard that a producer is meeting their customers’ needs on a quota basis and buyers are expected to order now if they want to purchase for the next month,” he stated.
According to a Thai converter, local PP offers increased by around THB2000/ton ($55/ton) from last week due to limited supplies. The buyer commented, “We continue to purchase on a needs only basis as demand for our end products remains disappointing.” A second converter added, “Local producers claim that they have limited availability. However, we are still able to find materials to cover our needs.”
Local homo-PP raffia and injection prices in Thailand are currently quoted at THB41500-43000/ton on an FD, cash basis. According to ChemOrbis Price Index, the range indicates THB1000/ton ($27/ton) increases from a week earlier.
In Vietnam, a woven bag manufacturer also reported that domestic PP prices rose by VND100,000-200,000/ton ($5-10/ton) on the week. “Demand is still not that strong. The high season for our end business will start next month, but we are not planning to keep high inventory at the moment,” he stated.
A Philippine converter, meanwhile, reported that domestic PP prices posted increases of PHP1000/ton ($21/ton) from last week. “Availability is sufficient in the Philippines and we are now waiting to receive our orders. Due to the recent increases, we are planning to wait for Chinese players to return from the holidays before making our next purchase.”
In Indonesia, a domestic producer implemented increases of IDR240,000/ton ($16/ton) on their PP prices this week. The producer has been persistently lifting their local prices since the beginning of September.
Meanwhile, in Malaysia, distributors reported that a domestic producer announced their October homo-PP prices to the domestic market with increases of MYR220/ton ($49/ton) from September at MYR4820/ton ($1092/ton) for homo-PP injection and raffia and at MYR4970/ton ($1126/ton) for PP film, all on an FD Malaysia, 30/60 days deferred payment basis. A buyer stated, “We believe that the producer elected to raise their prices due to the depreciation of the Malaysian ringgit against the US dollar.”
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