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In China, futures prices on Dalian Commodity Exchange have shown a slight rebound today with PP futures up CNY22/t ($3/t) and LLDPE futures increase CNY30/t ($5/t). Contract number 1605 for both PP and PE settled at CNY6243/t ($818/t without VAT) and CNY8570/t ($1123/t without VAT) respectively.

In contrast to the futures market, physical spot offers for both PP and PE in local market continue to soften CNY100/t ($15/t) compared to yesterday and demand is reported to be lethargic. A trader in Shanghai explained, “Local prices continue to go down in the absence of buyers and we think the market might need sometime to be able to rebound from current weak demand and comfortable inventory level. This might put pressure on the import market as well, hence we are monitoring the market trend closely before making decision.”

In the import market, an Indian maker announced new prices for homo-PP with $20/t increased compared to the pre-holiday level. A buyer from Ningbo commented, “This cargoes will only arrive by end of Apr which is a little too far for us. We are still considering our purchases as demand has yet to improve till this moment.”

In Southeast Asia market, sellers are maintaining very firm stance on their offers claiming limited supply while buyers are proceeding with caution not having enough confidence on the market outlook in the near term. In the PP market, supply appears to be limited and sellers are not in the mood to negotiate. A buyer received Middle East homo-PP offer at $880/t CIF Vietnam, LC AS term said, “We placed bid at $20/t lower than initial offers but our suppliers refused to accept. We think this price is a little bit too high and we might need to reconsider our purchases.” Meanwhile, a major Indian maker has also announced new prices at $40/t higher than the pre-holiday level at $890/t CIF Vietnam term claiming tight supply as the main support factor.

The PE market follow mostly stable to firm trend with very few new offers being reported. However, a Thai maker reportedly sold out HDPE injection cargoes after announced new prices with reduction at the beginning of the week. Meanwhile, a local Indonesian maker has cut domestic PE offers by approximate $35/t in the face of weak demand. A trader added, “Despite local producer has reduced their offers, distributors are still selling at $10-20/t discount compared to price list to encourage buying interest. We think that the first quarter of this year would be very turbulence due to weak demand and volatile energy market.”

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