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In Southeast Asia, players reported to have received softer offers for homo-PP from international suppliers amid persistence sluggish demand. In some part in the region, import homo-PP has breached below the $1000/ton threshold.

In Vietnam, homo-PP prices for Saudi Arabia and India origins have plunged $30-40/ton compared to the last opening to reach $1000/ton CIF, LC AS term during the earlier trading session. Players are now seeing higher seller’s willingness to give additional discount, which brings prices to below the $1000/ton threshold after almost three consecutive months of continuous increasing. A buyer reported, “Our supplier advised us they would give another $5/ton discount to settle deal at $995/ton for Middle Eastern cargoes based on CIF, LC AS term. We have no confidence right now despite some improvement is observed in the near-by China market. The downtrend has just started; hence we prefer to be on the sideline taking wait and see stance.”

In Indonesia, dutiable homo-PP are also witness $20-30/ton lower than last week with couple of deals reported at discount. A buyer received Saudi Arabia homo-PP at $1030/ton CIF Indonesia, LC AS term said, “Our supplier has down adjusted their prices and now open to negotiation. We plan to remain conservative in the coming days. Demand in Indonesia has weakened visibly, yet we think the extent of price erosion might be limited given limited supply from most regional producer.”

Players are now hoping that firming crude oil and improved demand in China would put a brake of the softening trend in Southeast Asia market. Import homo-PP prices to S. Asia market is currently reported at $995-1100/ton, CIF SEA, LC AS term.