Thai PP producer’s deals up despite ongoing softening in SEA
The source noted, “The producer is feeling free from sales pressure for the moment due to its planned maintenance shutdown in June.” Plus, the producer’s PP deals were considered quite competitive last week, almost matching the dutiable origins offered in the import market, as was noted in ChemOrbis Plastics News Aggressive homo-PP offers from Thai producer to SEA despite the premium they should carry due to their duty-free advantage. Therefore, this week’s higher deals can be interpreted as a sign of relieved stock pressure on the producer’s side.
A woven bag manufacturer in Indonesia purchased some Thai raffia at $1070/ton CIF, cash. “We secured some material in order to meet our post-Eid holiday needs ahead of time,” he noted.
A Jakarta-based trader reported that they were not able to obtain any ASEAN origin homo-PP offer below $1100/ton CIF, cash. He said, “Our Philippine supplier had no export allocation either. Demand remains quite weak while buyers are able to find more competitive levels from their local markets. When compared to PE, the PP market is slightly performing better nowadays.”
A global trader offering Saudi PP raffia at $1040-1060$/ton CIF, cash, stable from last week commented, “We think that the Thai producer can issue further increases on its offers. We heard that some South Korean producers oversold their allocations to the regional markets and they are now trying to provide their backlog orders. On the other hand, the rainy season has started to hit Vietnam, hampering buying appetite.”
In Southeast Asia, the overall range for import homo-PP raffia prices currently stand at $1040-1100/ton on a CIF SEA, cash equivalent basis, stable on the low end and down $50/ton on the high end when compared to the previous week.
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