20 March 2014 10:41 [Source: ICIS news]
SINGAPORE (ICIS)--Thailand’s polypropylene (PP) market is likely to remain bearish amid continued political instability in the country, traders said on Thursday.
The lifting of the state of emergency in the Thai capital of Bangkok on 19 March would do little to buoy up market confidence, they said.
Buying interest in the Thai PP market has been weak since the political tensions started in December last year, the traders said.
“The [political-economic] situation is unlikely to improve after three months. It may even worsen,” said a trader.
Anti-government protests have been going on in Thailand since November 2013.
Meanwhile, demand for inflated or inverted polypropylene film (IPP film) in the country has been weak because of school holidays in March to April.
Demand for book covers, one of the downstream products of IPP film, is seasonally soft during this period.
For PP injection, prices have remained weak even though demand for pails – a downstream product of the polymer – typically spikes in the run-up to Thailand’s new year holiday called Songkran in mid-April.
On 14 March, PP film prices decreased by baht (Bt) 0.50/kg week on week to Bt52.50-53.50/kg DEL (delivered) Bangkok, according to ICIS data.
PP injection and yarn prices, meanwhile, slipped Bt0.50 DEL at the low end of the range at Bt52.00-53.00/kg DEL Bangkok over the same period.
Buying activities are typically scant following the end of the new year holiday, traders said.
($1 = Bt32.30)
Additional reporting by Trixie Yap
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