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In China, once again futures prices on Dalian Commodity Exchange defeat the falling crude oil price to end today’s trading session with increases. PP futures advance CNY72/t ($11/t) to close at CNY6152/t ($799/t without VAT), while LLDPE futures increased CNY55/t ($8/t) to reach CNY8410/t ($1092/t without VAT).  

Physical spot offers for both PP and PE in domestic market follow suite as local makers continue to lift price list by CNY100/t ($15/t) from yesterday’s hike. However, players are reporting significant slow down in demand, and that there is minimal trading activities observed in the market.

A trader in Shanghai commented, “We think sellers offer higher prices this week having in mind that there might not be any deal concluded due to the fact that both buyers and logistic services are away for holidays. After the sanctions on Iran were lifted, we are monitoring export from this country closely to gauge the possible impact on the market. Till now, most Iranian cargoes are being settled based on formulation contract price basis, hence we would like to monitor further movement after the holidays.”

In the import market, a major Thailand producer maintain very firm stances on their offers at $1105-1110/t for HDPE film, CFR China, LC AS term. Market informed that the producer did not open any offers for LLDPE film and LDPE film cargoes claiming lack of allocation on the impending shutdown in the H2 this month. Another Southeast Asian maker added, “We only have a very small quantity of HDPE cargoes to offer at $1100/t CFR China, LC AS term but there is no buyers around at this moment.” There is minimal import homo-PP offers reported today.

In Southeast Asia market, most overseas homo-PP makers are not very active in opening fresh offers for this week. A Vietnamese buyer said, “We contacted some of our regular Middle East suppliers today to check on cargoes availability but we were informed that new offers would only be open after Chinese New Year. We expect a mostly stable trend after the holiday, putting bet on tight supply to support the market sentiment.” Another trader offer Vietnamese homo-PP to Southeast Asian market at $910/t CIF term added, “Initial market response was not very desirable and our Philippines customers are reporting more competitive local prices at the moment. Falling energy prices has yet to affect the market and we hope to see this trend to sustain in the near term.”

In the PE market, a major Thailand producer lifted their HDPE yarn prices by another $20/t today after a minor increase of $5/t yesterday. Source from producer said, “We managed to conclude deals at $1110/t CIF Vietnam, LC AS term and currently we are free from sales pressure. We were also surprise that market turn positive during the last moment before Chinese New Year and we are planning to stand firm on our offer even after the holidays.”  

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