Print

SOUTHEAST ASIA

• Regional PE market seems improved
• Limited new offers for import homo-PP

Polypropylene (PP)

There are very limited new offers for import homo-PP reported toward the end of the week while traders with limited remaining cargoes on hand started seeing acceptance for prices above the $1200/ton threshold. “Our customers have lifted bid levels to $1210/ton for Saudi Arabia cargoes. We are firm at $1220/ton with strong expectation that deals would be achieved,” an international trader offer the cargoes to Vietnam based on CIF, LC AS term said.

With supply for import homo-PP remain tight across Asia; Vietnamese players are speculating that offers for dutiable cargoes would touch the $1250/ton mark within January. “Buyers are left with no choice but to accept the hike. We think supply would only improve after the long Lunar New Year holiday,” a market source informed.

Polyethylene (PE)

Indonesian HDPE film market has hit multi month high levels with average prices based on FD Indonesia, cash equivalent hit above the 1500/ton threshold. Serious supply crunch forced buyers to accept the cargoes despite negative profit margins. This condition is expected to persist in the coming weeks, as both major local producers are unable to fulfill the demand. “Our allocation is cut by 50 per cent compared to regular period. We are unable to provide quantity to regular customers,” a local trader said.

Demand in Vietnam appears to be satisfactory. Most international traders continue to report receiving good number of inquiries with a distributor sold 2000 tons of Thailand PE cargoes at $1320/ton for HDPE film, $1200/ton for LLDPE film and $1260/ton for LDPE film CIF Vietnam said, “That was the allocation we had for January. We are requesting for additional cargoes as buyers are still asking for quantity.” No discounts were given on all deals for the mentioned Thai cargoes.