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Players active in selling PP in and to Thailand are complaining about the persistent weak demand condition here despite many have cut prices to entice buying interest. In fact, a major domestic producer reportedly slashed homo-PP prices by THB2000/ton ($59/ton) month on month basis, yet trading activities remain limited.

One of the reasons contributing to such sluggish condition is the psychological effect of the new start up at IRPC’s 300,000 tons/year new PP plant this July, which would make the company the second largest PP maker in Southeast Asia with total production output of 775,000 tons/year. A trader offered homo-PP at THB38,000/ton ($1115/ton) without VAT, FD Thailand, cash term said, “Supply is comfortable despite the recent shutdown at SCG’s plant. We heard that IRPC would produce PP film upon the start up, yet buyers still prefer to wait and see. Market is very quiet here.”

Another trader received offers at THB37,500/ton ($1100/ton) without VAT added, “On the other hand, it is monsoon season at the moment, hence demand is just not there. Many distributor are selling well below this levels just to deplete cargoes, from which interest for import material is also very limited.”

Several international suppliers have also brought up the difficulties they faced in selling import homo-PP cargoes to Thailand this week as buyers are placing bids at very low levels. A Saudi Arabia producer opened offers at $1040/ton CIF Thailand, LC AS term reported, “Our customers are requesting to conclude deals at $1000/ton with the same term and we are not willing to accept such low bids at the moment. This market condition might persist in the coming days as domestic material is more competitive than import offers.”