Domestic PP, PE prices face downward pressure in SE Asia

Players in Southeast Asia report that local PP and PE prices are facing downward pressure these days owing to widespread resistance on the part of buyers as well as bearish sentiment in other regional markets, as per ChemOrbis. Prices have already begun to move lower in some of the region’s local markets, while players in other countries are predicting a stable to softer trend for the coming weeks. Distributors in Thailand report that domestic PP and PE prices are moving lower this week. “Local PP prices lost THB2000/ton (US$65/ton) this week while HDPE prices declined by THB1000/ton (US$33/ton) and LDPE and LLDPE prices lost THB500/ton (US$16/ton). Lackluster demand pulled prices down this week and most buyers are not planning to return to the market before late October or early November. We do not believe that prices have much additional room to fall as energy prices are firm,” the distributor commented. Another distributor stated, “Local prices lost THB2000/ton (US$65/ton) for PP and THB500/ton (US$16/ton) for PE this week and we believe that sellers will have to concede to additional reductions of THB1000-1500/ton (US$33-49/ton) for HDPE before concluding deals. Buyers are proceeding very cautiously in their purchases for now and we do not expect to see any real improvement in purchasing activity for the next two to three weeks.” Players in Malaysia reported that domestic PP and PE prices are mostly holding steady at their initial October levels, while adding that they expect to see some decreases for November. A converter manufacturing plastic bags and tarpaulins reported, “We are not making any purchases for now as our stock levels are sufficient to meet our needs. We believe that prices will move lower in the coming weeks.” Another plastic bag manufacturer added, “Domestic PP and PE prices were unchanged this week in spite of the fact that local demand is weak. We believe that prices will move lower for November.” A sack manufacturer in Indonesia reported that they received offers for locally-held HDPE film and yarn with US$40-50/ton decreases this week. “Distributors are looking to pare down their stocks by offering locally-held materials at prices below the prevailing producer price level. We are not planning to make any purchases for now as we have enough stocks to meet our needs for the next month and expect to see further decreases in November,” the buyer stated. A distributor offering locally-held homo-PP imports at prices below the producer price level said, “We are not looking to replenish our stocks for now as buying interest is very limited. We believe that prices will move lower next month and are waiting to receive some initial November prices before making our next move.” In Vietnam, a converter manufacturing plastic containers told ChemOrbis, “Local prices have come down in accordance with weaker import prices. We are sticking to the sidelines for now as we believe that prices will witness some additional decreases over the coming week.” A Vietnamese distributor commented, “We reduced our domestic PP prices by around $10/ton this week to reflect softening import prices. Demand is not good as most buyers are taking a wait-and-see attitude to the market.”
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