Import PP prices sink to five month low in SEA, buyers anticipate further reductions
Since reaching a year-to-date high in mid-May, homo-PP prices on a CFR SEA basis have fallen by $214/ton, according to data from ChemOrbis Price Index. A trader based in Vietnam said that they are not planning to make any fresh purchases despite receiving lower offers for Indian and Middle Eastern homo-PP. “We think that prices will fall by an additional $100-150/ton in the coming weeks and are therefore unwilling to restock. Demand is limited as most converters are also delaying their purchases in anticipation of further price reductions,” the trader stated. A trader offering Thai material to Indonesia and Vietnam commented, “We had been hoping to conclude more deals to Indonesia after the Ramadan holidays, but buyers there remain hesitant to purchase even though we reduced our prices.”
A trader based in Vietnam said that they are also delaying their purchases even though they received a competitive offer for a Chinese origin this week. “We might purchase if prices fell by another $100/ton, but we judge the current levels to be too high to accept,” the trader stated. A trader in Malaysia said that they received an offer for coal-based Chinese raffia this week. “We decided not to accept this offer as we believe that prices still have room to come down. We have never imported material from China before and are currently exploring the logistics of purchasing from China. We were quoted a price of around $100/container for a 20 foot container to be shipped from China to Malaysia,” the trader commented.
A converter operating in Indonesia added, “We are deferring our purchases for now as our stock levels are satisfactory while we anticipate further reductions in the days ahead. We find new offers for non-dutiable Southeast Asian origins to be more competitive than offer for Middle Eastern cargoes these days.”
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Asian PVC sees V-shaped recovery in Q2, what will Q3 bring?
- Will capacity additions cast cloud on ethylene upsurge in Asia?
- US PVC offers in Egypt rise steadily but resistance grows in tandem
- PE buyers’ resistance grows in SEA; duty-free origins more competitive than Mid-East
- Polymer demand cools in Turkey: Is price correction ahead for PP, PE and PVC?
- Local PP, PE markets in Indonesia, Thailand, and Philippines follow imports higher
- Taiwanese major’s July PVC pricing exceeds initial expectations
- China’s rising PET trend takes a pause, but longer-term outlook remains firm
- Dalian Futures Market: PP, LLDPE, PVC, MEG
- Vietnam’s homo-PP market plunges to lowest since 2009