Thai trader: Local producers cut PP prices to domestic market

A trader reported that two local producers cut their PP prices by THB500/ton ($14/ton) while PE prices were rolled over from last week. He stated that PP supply is ample in the country. He also noted that there is good demand for LDPE, but supply is tight for this product.

A local producer’s offers currently stand at THB38500/ton ($1184/ton) for homo-PP raffia, at THB39000/ton ($1199/ton) for PP film FD Thailand, cash excluding VAT basis.

According to the trader, another local producer now offers LLDPE c4 film at THB45000/ton ($1384/ton), HDPE film and HDPE blow moulding at THB44000/ton ($1353/ton), and LDPE film at THB46500/ton ($1430/ton) with the same terms.

The trader also reported that one of the local producers will have maintenance on their PPRC production line in the second half of October. “We believe that the firming trend in China’s market will be a short run and eventually a downturn will take place, especially in November when we expect prices will collapse. Demand in the Thai market will not recover this month since most of our customers have sufficient stocks until November,” he said.