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As Chinese players are away from their desks for a weeklong National Day holidays, the Southeast Asia market sees very limited trading activities on the first trading day of the week. Most international suppliers have yet to open fresh offers while others are trying to hold firm on their cargoes. Buyers on the other hand, are very cautious monitoring further development after ethylene costs plunged to the lowest levels seen since late June 2016.

A Vietnamese buyer informed, “Our domestic suppliers called us to informed that they are maintaining PP and PE offers unchanged compared to last week, however, we might only respond later. There is little movement in local market in the first half of the trading day and we feel a bit worried that monomers costs are weakening despite stronger energy market.”

In Indonesia, a major domestic producer rollover their PP and PE offers amid quiet trading activities. A trader commented, “We were hoping that surging energy values and the completion of tax amnesty program would bring buyers back to the market. Yet, it is not happening so soon. Domestic traders have been selling well below producer’s official price list due to limited buying interest.”

Players in Philippines and Thailand also reported similar situation and it appears that falling monomers prices are affecting buyer’s confidence. CommoPlast is currently monitoring further market development and would provide latest update once it becomes available.