Indian major announced homo-PP offers to China, Southeast Asia

An Indian producer has announced fresh offers for homo-PP to Asia’s major markets at firm level following the recent development in the region. The latest offers stand at $1200/ton CIF Vietnam and Indonesia, and at $1060/ton CFR China, however, respond from buyer side is very disappointing.

In Vietnam, buyers are comparing the new offers with the recent deals concluded for a Saudi Arabia cargo with a source commented, “This offer is way above market acceptance level at the moment. The trend appears to be softening with the availability of competitive re-export material from China that eased the recent supply tightness in Vietnam. We have purchased Saudi cargoes earlier today at $1130/ton CIF Vietnam.”

Players in Southeast Asia also expressed concern over the price gap between the two locations with an Indonesian buyer added, “Offer to China is $140/ton lower than in Southeast Asia, which reflect the weak demand condition in this market. We are seeing a good number of re-export, prompt shipment offers from China this week, therefore we are not confident in accepting such high prices.”

Even in China, players are showing stiff resistance toward the cargoes despite the offer is lower than other Middle Eastern material. A trader said, “The shipment will only arrive in June, which is too much of uncertainties involved.”

However, the producer does not so eager to slash the prices to Southeast Asia claiming healthy sales in domestic India and better margins in Turkey market. “We might monitor further development before implementing any measures, since we are not facing any strong sales pressure.”