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NewsSSESSMENTS: Southeast Asian PP Producers Started Selling Cargoes To The Region Aggressively, Provide Hefty Discounts

Author: SSESSMENTS

As told to SSESSMENTS.COM, several Southeast Asian PP producers started selling cargoes to the region aggressively by providing hefty discounts. Early this week, deals for regional PP Homo Raffia cargoes were still captured above $1,000/ton-level, precisely at $1,015/ton on LC at sight, CIF Indonesia Main Port basis for cargoes of Thailand origin. However, as the week progressed, deal levels for PP Homo Raffia cargoes started to go down since the suppliers were willing to give hefty discounts to boost sales.

On July 29, a trader-based in Thailand reportedly sold PP Homo Raffia cargoes of a Thai PP producer at $960-970/ton to big players in Southeast Asia. The trader revealed that such a level was $30-40/ton lower compared to the offers available last week. Despite the price reduction, the trader noted that most buyers are still taking a wait-and-see stance. On the same day, SSESSMENTS.COM data showed that deals for PP Homo Raffia cargoes from a Vietnamese producer also recorded below $1,000/ton-level, at $990/ton to Indonesia and Philippines market. 

Coming to July 30, the Thai PP producer becomes more aggressive in offering materials; willing to sell at $950/ton or $85/ton lower from the initial level. However, a converter who received the offers was not convinced to make purchases amid many uncertainties in the market. Whereas in Indonesia, a trader attempted to place bids for import PP Homo Raffia cargoes of Vietnam origin at $920/ton, which is offered by the supplier at $70/ton lower than last week’s level at $940/ton. Since the supplier could not move cargoes at such a level, the bids were rejected. As SSESSMENTS.COM noted, all import offers are on LC at sight, CIF/CFR Main Port basis.

Looking ahead, market players foresee the downtrend in import PP prices will prolong since the current levels still largely fail to stimulate buying sentiment. Majority of Southeast Asian market players contacted by SSESSMENTS.COM are pessimistic for the near-term pricing outlook as buyers remain disincentivized despite price reductions and hefty discounts, citing buying import cargoes at the moment is too risky.

Transactions for import PP Homo Raffia between July 27 to July 30 on LC at sight, CIF/CFR Main Port basis

DateOriginTransaction TypeOffers (USD/ton)Delivery Country
27-Jul-2020ThailandOffer Received1,060Indonesia
27-Jul-2020ThailandPurchased1,015Indonesia
27-Jul-2020VietnamOffer Received1,000-1,050Indonesia
27-Jul-2020VietnamBuy Idea940Indonesia
27-Jul-2020VietnamPurchased990Indonesia
28-Jul-2020SingaporePrice List990Indonesia
29-Jul-2020ThailandSold960-970Southeast Asia
29-Jul-2020ThailandOffer Received1,045Vietnam
29-Jul-2020VietnamSold990Indonesia
29-Jul-2020VietnamSold990Philippines
30-Jul-2020MalaysiaOffer Given1,020Indonesia
30-Jul-2020ThailandOffer Received1,020-1,035Vietnam
30-Jul-2020ThailandSell Idea950Vietnam
30-Jul-2020VietnamOffer Received940-950Indonesia
30-Jul-2020VietnamBid Given920Indonesia

Tags: Asia Pacific,English,Indonesia,Malaysia,Myanmar,News,PP,Philippines,SEA,Singapore,Thailand,Vietnam

Published on July 30, 2020 11:06 PM (GMT+8)
Last Updated on July 31, 2020 12:12 AM (GMT+8)