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In Southeast Asia, there is some improvement in term of trading activities reported on the last trading day of the week, which players attributed to the support gained from the energy market. However, sellers are still facing difficulties to increase their offers, especially for PE cargoes. A trader receiving offers for Saudi Arabia LLDPE film at $1180/ton CIF Philippines said, “Our supplier has cut their prices by $20/ton compared to last week due to strong buyer’s resistance towards prices above the $1200/ton threshold. We are still considering our purchases as we have sufficient inventories at the moment.”

Meanwhile, strengthening energy market is lending support to the general sentiment and suppliers in Vietnam and Indonesia have reported better number of purchase inquiries towards the end of the week. In Vietnam, domestic traders are attempting to lift their locally held PP and PE cargoes to recoup the costs. A trader informed, “We do receive more purchase inquiries just these two days. Our customers bid Saudi Arabia LLDPE film at VND30,000,000/ton ($1220/ton without VAT), which is VND300,000/ton ($13/ton) higher than earlier this week. We refused to accept as our costs are higher. We think market might sustain the firming trend in the coming days given the current energy values. However, the sustainability remains a question mark.”

Many players prefer to wait for Chinese buyers to return from the National day holidays to have clearer market direction with a source commented, “The prospect of post-holiday demand in China is still uncertain, but we think buyers come back at the high side of the energy market would have some motivation to replenish cargoes. Hence, market has the support to sustain the stable trend in the coming week.”

Regional PP market is mixed. Despite unsatisfactory number of deals concluded, international suppliers refused to give discount. There are some import Saudi Arabia homo-PP to Indonesia at $980-990/ton CIF, LC AS term which surprised many buyers amid the current market situation. In the regional dumping market – Vietnam, meanwhile, offers below $1000/ton threshold have technically faded. This week, couple of Middle Eastern producers have lifted their homo-PP prices to Vietnam by $10-20/ton from earlier week, however, converters only accept to replenished at rollover level. A woven bag manufacturer informed, “We plan to take some quantity if our supplier accept the $1000/ton bid. We think market might continue to firm up in the near term if post holiday replenishment in China market is good.”