PP prices fall as buyers remain sidelined
In Southeast Asia, PP prices recorded further reductions as buyers kept to the sidelines in anticipation of seeing lower prices in the weeks to come. Import homo-PP injection and raffia prices slid $20/ton on the low end of the range to be quoted at $820-930/ton CIF SEA, cash equivalent basis. There are rumors that Middle Eastern raffia was being traded as low as $790/ton CIF in Vietnam, although this could not be confirmed by the time of press. A trader reported offering Indian raffia at $840/ton CIF while adding that they received bids at $800/ton. “We managed to conclude deals at $840/ton last week but we are now struggling to conclude deals at this level,” the trader stated. A trader who reported receiving offers for three different Middle Eastern origins in the range of $840-850/ton CIF added, "Trading activity is limited as most buyers are placing their bids at around $800/ton." Inside the region’s local markets, prices declined in Thailand, Vietnam and the Philippines, sending local prices in those countries to the lowest levels seen since ChemOrbis launched its local PP indexes for Southeast Asia in 2010. A distributor based in Thailand commented, "Activity is winding down ahead of the year-end and we believe that sufficient supply and weaker import prices will maintain downward pressure on the market in the days ahead. We are receiving offers at THB36500-37000/ton ($1010-1024/ton) FD now and we think prices will come down to around THB35000-36000/ton ($969-996/ton) soon."