Finished Product Sales Impeded Improvement In Southeast Asia PP Demand
- Domestic and import offers captured in the same trend
- Demand in the region remains subdued
- Outlook for PP market remains cloudy
Market sources informed SSESSMENTS.COM that the slow finished product sales impeded improvement in Southeast Asia PP demand. In the domestic market, the offers for local PP Homopolymer grades in Thailand were captured stable to firmer by THB500/ton ($15.5/ton) compared to last week. Sources stated that the offers were kept firm as sellers claimed to have no inventory pressure. However, bids from the customers were THB500-1,000/ton ($15.5-31/ton) lower from the initial offer levels. In Malaysia, local offers for PP Homopolymer grades recorded between MYR3,750-3,950/ton ($865-911/ton) on 30 days credit term, FD Malaysia basis, and excluding 6% SST, which is stable from last week. From the import market, June shipment offers for PP Homopolymer grades from a Malaysian polyolefins producer to the Philippines recorded at $20/ton higher from last month. While in Myanmar, buyers decided to delay the procurement activities due to higher import prices. As noted, import offers for Saudi PP Homo Raffia to Myanmar surged by $30-40/ton compared to the offers available in late April. Detailed information for Indonesia and Vietnam market is available in the WeeklySSESSMENTS of respective countries.
Demand for PP in the Southeast Asia market remains slow in general. In Malaysia, although the government already allowed converters to run at full capacity, most converters prefer to keep the operation at a low rate owing to slow sales for finished products. Hence, the demand for PP resins remains slow. While in Myanmar, buyers delayed the procurement activity and preferred the sidelines position following the unexpected price increases. For Philippines market, sources added that Manila is still under Enhanced Community Quarantine (ECQ) until May 31. On the supply side, there are no issues reported to SSESSMENTS.COM.
Pertaining to the outlook, the majority of Southeast Asian market players opined to SSESSMENTS.COM that the possibility for price increases remains thin considering the slow PP resins demand and sluggish sales for finished products. Moreover, the upcoming rainy season that is expected to hit Thailand and Myanmar in June-July also discourages buyers in making procurement.
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NewsSSESSMENTS: Thai Trader Maintains Firm Local PP Offers, Demand Expected To Shift Onward
NewsSSESSMENTS: Unexpected Changes On PE, PP Prices Urged Buyers In Myanmar To Delay Procurement Activity
NewsSSESSMENTS: Malaysian Producer Applied Various Pricing Strategies For June Shipment To Southeast Asian Countries
WeeklySSESSMENTS: SEA PP Prices W/C May 4
Local PP offers on cash/credit term, FD basis, excluding VAT (except in PHP term including 12% VAT)
Import PP offers on LC at sight, CIF Main Port basis
Tags: Asia Pacific,English,PP,SEA,Weekly
Published on May 13, 2020 1:06 PM (GMT+8)
Last Updated on May 13, 2020 1:06 PM (GMT+8)