More suppliers raised intention to lift homo-PP offers to SEA

As post holiday demand in China remains healthy while buying interest in couple of Southeast Asian major market shows sign of improvement, several regional and international suppliers have raised intention to lift homo-PP offers to reflect better market condition.

An Indian producer informed that the company has implemented $20/ton hike to all distribution channels in Southeast Asia market from last week and expect new offers to buyers to reach about $1120/ton CIF SEA, LC AS term. The maker said, “We received a good number of purchase inquiries from market and we think it is time for market to revive. Stronger energy market also provides support for the general sentiment.”

Besides, a major Southeast Asian producer also expressed intention to lift homo-PP offers by approximate $30/ton from last month with a distributor source added, “Though the new price announcement date is still couple of weeks away, however, looking at the current supply-demand condition, our principal supplier is rather positive about the hike.”

As reported earlier, a South Korean producer sold homo-PP yarn to Vietnam last week at $1110/ton CIF Vietnam, LC AS term has also brought up plan to increase their offers, yet new prices might only be announced in one or two weeks time. Meanwhile, a Saudi Arabia producer has already implemented $10/ton hike on latest offers for homo-PP yarn to Vietnam at $1100/ton CIF term and managed to sell out available quantity shortly after that.

However, the main concern at the moment is that the price gap between China and Southeast Asia has widened to more than $100/ton triggering a possibility that re-export cargoes from China might once again flow into the region. Import homo-PP to SEA market currently stands at $1080-1230/ton CIF, LC AS term.