SEA players: Production issues provide support for PP market

In the past couple of days, there have been a number of PP plants across the region reported emergency shutdown due to technical glitches. Buyers in Southeast Asia market are now very concern about the market outlook in the coming days with a possibility of curtail in PP supply from regular suppliers.

A customer in Vietnam commented, “We did not stock up too much of material in the past one month due to uncertain market outlook. However, with the number of issues facing by PP plants recently, we think that PP market might be able to sustain the stable to firm trend in the near term. Demand for our end product is regular at the moment.”

Another converter in Indonesia said, “Initially we were expecting some discount on PP price based on rapid deteriorating energy market. However, it might be difficult to obtain large price reduction now given a number of PP plant encountering production problem. Temporary we will source material for our immediate need from local market while monitoring the state of demand in other major market for clear market direction.”

This week, import PP prices to Southeast Asia market maintain on stable to firm trend in spite of $30-40/t reduction in propylene cost. Kindly visit commoplast.com for detail daily local and import prices to China and Southeast Asia market.     

For further information, kindly contact our market analysts at commoplastinfo@gmail.com.