Philippines’ polypropylene (PP) offers of imported material have fallen as traders attempt to entice the buyers who are holding out on purchasing waiting for the local producer JG Summit to announce its prices, several traders said on 11 June.
Philippines’ JG Summit Petrochemical was expected to release domestic PP offers in the week ending 15 June.
The company’s PP plant was taken off line for upgrading works in March 2013 and now it is scheduled to restart along with the start up of the company’s naphtha cracker that week.
Offers of imported material were heard at Ps40.00-41.00/lb DEL Manila during the week.
Domestic prices of PP flat yarn and injection were at the Philippine peso (Ps) 42.00-43.00/lb (US cents 96.53-98.83/lb) DEL (delivered) Manila, in the week ended 6 June, according to ICIS data.
Prices across other southeast Asian countries, have been lower than the Philippines, on the back of largely sufficient supply of both domestic and imported material.
In Thailand, PP injection and flat yarn prices were at Thai Baht (Bt) 51.00-54.00/kg (US cents 71.18-75.37/lb) DEL Bangkok.
Over in Indonesia, prices of the same grades were at $1640-1690/tonne (US cents 74.39-76.66/lb) DEL Java.
“We have been buying the high-priced imported material,” said a Philippines-based trader. Offers of domestic material have been scant since the start of 2014, according to the traders.
“The demand is actually not strong in June, because of the seasonal rains and the school holiday at some schools,” a separate Philippines-based trader said.
The buyers have been purchasing limited volume for urgent requirements, as the demand does not justify the prices, according to the traders.
Despite the lower-priced offers this week, most buyers said they preferred to hold out for JG Summit’s offers for comparison.
“We are waiting for JG Summit’s offers to be announced in June. We won’t be buying the imported material anymore,” said the first trader.