- Indian Subcontinent origin $935-950/ton
- Middle East origin $920-1,000/ton
- Southeast Asia origin $990-1,050/ton
Comments by market players on PP Homo Raffia market as follows:
“Last week, we offered import Saudi PP Homo Raffia to Vietnam market at $990/ton on LC at sight, CIF Vietnam Main Port basis. However, Vietnamese buyers were giving a cold shoulder as most of them already had sufficient inventory on hand. As such, most buyers prefer to only monitor the market movement with no intention to make purchases. The market would turn to be quiet if prices continue to increase this week.” A global trading house reported to SSESSMENTS.COM on July 20.
“Offers for PP Homo Raffia from the Middle Eastern producer to Indonesia market remain unchanged compared to last week. The offers are ranging between $950-960/ton, while the sell idea from our side is lower by $5/ton on the higher-end of the price range,” a global trading house revealed on July 21.
“We decided to increase export PP Homo Raffia offers for August shipment to Indonesia by $20/ton as compared to last month’s levels, available at $1,050/ton on LC at sight, CIF Indonesia Main Port Basis,” a Thai polyolefins producer informed SSESSMENTS.COM on July 21.
“Offers for Thai PP Homo Raffia cargoes to Vietnam captured at $1,025/ton, or $35/ton lower compared to last week’s level. Despite the reduction, buyers were showing cold response as most of them were unwilling to accept the offers around $1,000/ton-level. Additionally, buyers voiced out their buy idea for import PP Homo Raffia of Saudi origin at $930-940/ton,” a trader based in Vietnam commented on July 21.
“We only received offers for PP Homo Raffia from one of the Indian producers at $950/ton. Meanwhile, a South Korean producer is not offering this week. All import offers are on LC at sight, CIF Vietnam Main Port basis,” a converter based in Vietnam unveiled to SSESSMENTS.COM on July 21.
“Speaking of pricing outlook, we are considering some aspects that could determine August shipment offers for PP Homo Raffia cargoes to Southeast Asia. First, firm propylene prices, especially after the recent fire accident at Formosa’s RDS unit. Second, strong crude oil prices. Third, delivery issues experienced by the Middle Eastern producers stemming from lack of manpower which impacted on the shipment process and lead to the limited availability of Middle Eastern cargoes. Fourth, shutdown at several PP plants in Southeast Asia and China. Considering those factors, we believe that it is rather hard for PP prices to be adjusted down in the near term. However, we are not sure that the prices could be adjusted up further since demand is not supporting. As such, we foresee that PP prices would remain stable at the current levels,” the leading Indian petrochemical producer shared their thoughts on July 22.
“This week, import PP Homo Raffia offers of Vietnam origin to Indonesia market maintained stable as compared to last week, available at $1,010/ton on LC at sight, CFR Indonesia Main Port basis. Some customers submitted bids at $40/ton lower than the initial levels, but we rejected the bids since we could not sell that low. Buyers remain careful in sourcing materials due to the slow finished product sales, also they may be discouraged by high prices,” a trader from Indonesia revealed to SSESSMENTS.COM on July 22.
“For August shipment, a Middle Eastern producer initiated price increases for PP Homo Raffia cargoes between $20-30/ton as compared to the offers for July shipment, available between $990-1,000/ton on LC at sight, CIF Yangon Port. So far, customers are not responding to these offers as it is deemed unworkable. They prefer to wait for more offers from other suppliers,” a trader in Myanmar informed on July 22.
“Import Vietnamese PP Homo Raffia cargoes are available at $990/ton on LC at sight, CIF Indonesia Main Port basis. However, we are unwilling to purchase amid the downtrend on PE prices and slow demand in the domestic market,” Indonesia’s largest local trading house told SSESSMENTS.COM on July 22.
“Import PP Homo Raffia offers from a Thai PP producer dropped by $45/ton on a weekly comparison and stand at $1,020/ton on LC at sight, CIF Vietnam Main Port basis. Despite the reduction, the offers are still unworkable in the market as buyers are unwilling to purchase PP Homo Raffia cargoes at and above $1,000/ton-level,” one of the Vietnamese traders reveals on July 22.
“After a Malaysian polyolefins producer announced August shipment offers with a range of increases between $100-120/ton across PE and PP grades on a monthly comparison, we can conclude the deals for PP Homo Raffia at $1,000/ton on LC at sight, CIF Philippines Main Port basis. The deals were concluded at $20/ton lower than the initial offer level,” one of the Philippines traders informed SSESSMENTS.COM on July 24.
“We know that one of the Thai PP producers maintained the export PP Homo Raffia offers to the Vietnam market unchanged over the week as they are waiting for buyers to submit the bids. The producer acknowledged that PP Homo Raffia offers at $1,050/ton gained a cold response from buyers,” one of Thailand traders commented on July 24.
“Saudi PP Homo Raffia cargoes surfaced with an increase of $60/ton as compared to the offers received at the beginning of July. We managed to secure the cargoes between $30-40/ton lower than the initial offer level. For regional cargoes, import PP Homo Raffia cargoes of Thailand origin stood at an unreasonably high level, at $1,050/ton on LC at sight, CIF Vietnam main port basis. We think that the Thai producer has no intention to offer PP Homo Raffia cargoes as they do not have an allocation to sell. Further added, while demand for PP is considered steady in Vietnam, yet import PP Homo Raffia prices are way too high,” a converter based in Vietnam shared their thoughts to SSESSMENTS.COM on July 24.
Transactions for import PP Homo Raffia between July 20 to July 24 on LC at sight, CIF/CFR Main Port basis
| Origin | Transaction Type | Offers (USD/ton) | Delivery Country |
|---|
| Indian Subcontinent | Offer Received | 935 | Indonesia |
| Indian Subcontinent | Offer Received* | 950 | Vietnam |
| Middle East | Offer Given | 940-960 | Indonesia |
| Middle East | Offer Received | 920-960 | Indonesia |
| Middle East | Purchased | 920-930 | Indonesia |
| Middle East | Sell Idea | 950-955 | Indonesia |
| Middle East | Sold | 940 | Indonesia |
| Middle East | Offer Received | 990-1,000 | Myanmar |
| Middle East | Buy Idea | 930-940 | Vietnam |
| Middle East | Offer Given | 950 | Vietnam |
| Middle East | Offer Received | 950-970 | Vietnam |
| Middle East | Purchased | 930-940 | Vietnam |
| Southeast Asia | Bid Received | 970 | Indonesia |
| Southeast Asia | Offer Given | 1,010-1,050 | Indonesia |
| Southeast Asia | Offer Received | 990-1,010 | Indonesia |
| Southeast Asia | Price List | 1,020 | Indonesia |
| Southeast Asia | Sold | 1,000 | Philippines |
| Southeast Asia | Offer Given | 1,025 | Vietnam |
| Southeast Asia | Offer Received | 1,020-1,050 | Vietnam |
Description: *August shipment offers
Tags: Asia Pacific,English,News,PP,SEA
Published on July 27, 2020 10:39 AM (GMT+8)
Last Updated on July 27, 2020 12:46 PM (GMT+8)
