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Import homo-PP to Southeast Asia has been following the firming trend over the past weeks on the back of tightened supply. This week, buying interest across the region started to fall with buyers claimed to have stocked up some inventories and resisted the continuous price increment. In contrast, most suppliers show no intention to stop lifting prices due to lacking sales pressure.

A major Saudi Arabia producer announced fresh homo-PP to Indonesia and Vietnam at $1110-1120/ton CIF, LC AS term. An international trader said, “We have not been able to conclude any deal to Vietnam at the latest prices. Demand is weaker than we expected and yet, we are planning to implement further hike in the coming week.”

Another trader selling to Indonesia added, “Most buyers are requesting for last week’s prices at $1080/ton CIF term and we are not able to meet the bids as market is significantly firmer now. We might only be able to offer a small discount for serious buyers.”

Other regional suppliers also started to take firmer stance on their cargoes anticipating continued firming trend in the coming week. A trader insist on the price level of $1170/ton CIF Indonesia for Vietnamese homo-PP, though a good number of buyers placed bids at $30/ton lower. The source said, “Supply is very tight since the plant just restarted from nearly two months maintenance shutdown. We are not able to concede to any discount at the moment.”

Another trader offered Kuwait homo-PP at $1110/ton CIF Indonesia also reported to have received a number of bids at $30/ton lower said, “We see better buying interest among traders while converters are very reluctant. This could be that converters have stocked up some inventories from prior weeks. We are now analyzing several risks including sluggish demand condition and stable upstream costs.”

At the time this report is published, few deals for import Saudi Arabia homo-PP have been concluded at $1110/ton CIF Vietnam, LC AS term, marking a new benchmark of market acceptance. This therefore might pedal import offers higher in the coming days