PP Prices In Southeast Asian Countries Adjusted Further, Gaining Support From Supply Issues
- Producers in some Southeast Asian countries are facing supply issues
- PP demand in the region is still not strong except in Indonesia
- Market players questioned how long the current PP price trend could sustain
SSESSMENTS.COM noted that PP prices in Southeast Asian countries were adjusted up further as gaining support from supply issues. In Thailand, local offers for PP film and non-film grades increased by THB1,000/ton ($32/ton) compared to last week as local producers do not have materials to sell. Similarly, PP offers across all grades from the leading Philippines polyolefins producer to the domestic market increased between PHP1,000-2,000/ton ($20-40/ton) owing to firmer feedstock prices and limited allocation as the producer was able to move a considerable amount of cargoes to the China market last month. Import PP offers to the region were not many since foreign suppliers are also facing a shortage in supply. A Thai trader commented that four-digit offers surfaced in the region because suppliers wanted to test buyers’ acceptance amidst tight supply. Detailed information for Indonesia and Vietnam market is available in WeeklySSESSMENTS of the respective countries.
In general, PP demand in the region is still not strong except in Indonesia. In Thailand, buyers show resistance toward high offers and hold procurement activities citing sufficient inventory as the reason. In the Philippines, demand for PP improves as buyers have placed orders but still could not be labelled as robust yet since this week is just the second week since lockdown in Metro Manila was lifted and only some manufacturers resume production. In Malaysia, demand for end products is good but not all converters do replenishment for raw materials. SSESSMENTS.COM was informed that some converters in the country still have sufficient inventory for production. On the supply side, supply for local and import PP in the region is tight. A Thai PP producer has limited allocation stemming from maintenance shutdown at the producer’s plants while another PP producer in Thailand is having backlogs to clear.
The majority of market players contacted by SSESSMENTS.COM questioned how long high PP prices could sustain as the current PP prices are only supported by firm monomer prices and tight supply while demand could not support the levels. Some players opined that prices might remain firm during June, but in July the trend might change.
Local PP offers on FD basis, excluding VAT (except PHP term including 12% VAT, all equivalent in USD excluding VAT)
| Origin | Product | Transaction Type | Currency | Offers/ton | Equivalent in USD/ton | Payment Term | Delivery Location |
|---|
| Malaysia | PP Block Copolymer | Price List | MYR | 4,160-4,230 | 974-990 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Film | Price List | MYR | 4,230 | 990 | 30 Days Credit Term | Malaysia |
| Philippines | PP Homo Film | Purchased | USD | 1,000 | - | Cash In Advance | Philippines |
| Thailand | PP Homo Film | Offer Received | THB | 34,000 | 1,083 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Offer Given | THB | 35,000 | 1,115 | Cash In Advance | Thailand |
| Malaysia | PP Homo Injection | Price List | MYR | 4,030 | 943 | 30 Days Credit Term | Malaysia |
| Philippines | PP Homo Injection | Offer Received | PHP | 61,000 | 1,088 | Cash In Advance | Philippines |
| Thailand | PP Homo Injection | Offer Received | THB | 32,000-33,000 | 1,019-1,051 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Offer Given | THB | 34,000 | 1,083 | Cash In Advance | Thailand |
| Malaysia | PP Homo Raffia | Price List | MYR | 4,080-4,130 | 955-967 | 30 Days Credit Term | Malaysia |
| Philippines | PP Homo Raffia | Offer Received | PHP | 60,000-62,000 | 1,070-1,106 | 60 Days Credit Term | Philippines |
| Philippines | PP Homo Raffia | Offer Received | PHP | 61,000 | 1,088 | Cash In Advance | Philippines |
| Philippines | PP Homo Raffia | Purchased | USD | 950 | - | Cash In Advance | Philippines |
| Thailand | PP Homo Raffia | Offer Received | THB | 32,500-33,000 | 1,035-1,051 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Offer Given | THB | 34,000 | 1,083 | Cash In Advance | Thailand |
Tags: Asia Pacific,English,PP,SEA,Weekly
Published on June 10, 2020 2:41 PM (GMT+8)
Last Updated on June 10, 2020 3:22 PM (GMT+8)
