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In China, futures prices on Dalian Commodity Exchange extend the firming trend today, however the speed is kind of loosening. PP futures increased CNY3/t ($0.5/t) to reach CNY6117/t ($795/t without VAT) while LLDPE futures increased CNY15/t to close at CNY8410/t ($1092/t without VAT).  

Domestic spot offers for PP firm up CNY100/t ($15/t) compared to last week and PE market remain mostly stable. There is very limited trading activities in both local and import market as a majority of players are away for the long Chinese New Year holidays now.

A trader from Linxi commented, “We do not see any spot offer in the import market today and 90% of our regular customers have been away for holidays. We think that local producer introduces increases on their price list due to lack of inventory pressure, however, we expected market would be muted this week.

Another trader from Ningbo said, “We are trying to gauge the post-holidays market outlook and we think there is a possibility that prices might continue its journey north. We based our expectation on a series of maintenance shutdown in local market during Q2 while we are hearing that feedstock supply in Middle East is also tight. Players will partially return to their desk by 15 Feb 2016, yet we do not expect any immediate pick up in demand at that point of time.”

In Southeast Asia, there is a real mix sentiment spotted across the region, however, most players are expecting a stable to firm trend especially for the PP cargoes. Local PP prices in both Vietnam and India market firm up on the first trading day of the week for a diverse reason. Players in Vietnam attribute the price hike to the firming international trend and low local supply, whereas higher prices in local India is blamed to be a result of the depreciation of the rupee. A Vietnamese trader said, “Market will be off for the holiday soon, however traders are still confident in lifting their prices due to low inventory in hand. We think that prices might be able to remain on the stable to firm trend even after the holidays.”

In the PE market, a major local maker in Indonesia elected to reduce their offers by $50/t for LLDPE film and by $30/t for HDPE grades in the face of sluggish demand. A converter said, “We decided to replenish some HDPE film cargoes after obtain additional $30/t discount from trader. We plan to just buy in small quantity to avoid any price risk.” In the import market, a major Thailand producer raise their HDPE offer slightly by $5/t compare to last week, said, “We only have 300 tons of HDPE yarn to offer to Vietnamese buyers, hence we are not planning to give any discount on these parcels.” In addition, buyers in Malaysia and Indonesia reported to have received Singaporean HDPE film recently at relatively competitive price level.       

*Please note that CommoPlast will not have Daily Report on 8th to 12th February. Thank you for your support.

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