Import ASEAN homo-PP offers inched lower in Vietnam, Indonesia

While most international suppliers are attempting to maintain firm stance on import homo-PP offers to Southeast Asia citing limited supply condition; couple of regional producers decided to implement minor reduction in the face of stiff resistance.

In fact, Thailand homo-PP cargoes are concluded in Vietnam at $10/ton below last week, at $1160/ton CFR Vietnam, LC AS term. “Compared to dutiable cargoes, this material is much more competitive. The shipment is set to arrive Vietnam by end of the month and we hope buying interest fro ready cargoes from local buyers to be healthy in December,” a trader commented.

Meanwhile, deals for Philippines homo-PP in Indonesia slipped below the $1200/ton threshold, reaching $1190/ton CIF Indonesia, LC AS term. Such development has been long awaited among buyers, who are now pressuring for further cuts. “This is because local traders are offering at relatively competitive levels and we believed that downward pressure on import cargoes might persist in the near term,” a buyer commented.

Market is on a tug of war and suppliers are holding tight on the supply side for support. However, with softened upstream propylene costs and persistent weak demand, buyers are expecting a small scale discounts to emerge in the coming weeks.