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SOUTHEAST ASIA

• Overseas PP sellers continue achieving hike target in Vietnam
• PE buyers await fresh offers for February shipment

Polypropylene (PP)

After lifting import homo-PP by as much as $60/ton in the previous trading days, major Middle Eastern producer have achieved the full hike in Vietnam with deals concluded at $1260/ton CIF, LC AS term. Availability remains very limited and players are not seeing any sign of a price correction at the moment. “Local traders are very cautious about making fresh replenishment at the current prices, however, converters have shown acceptance. The up-trend might persist in the near term,” an international trader informed.

At the meantime, offers for locally held cargoes surged as much as VNDVND800,000/ton ($35/ton) on the final trading day of the week, bringing the price range to VND32,600,000-33,000,000/ton ($1305-1320/ton without VAT), FD Vietnam, cash equivalent. Sales are not strong as converters are unable to accept the drastic increases at the moment. However, buyers might have to give in considering the tight supply condition.

Polyethylene (PE)

There are very limited new offer for import PE to the region, and even once active Indian suppliers are now taking a break. Most regional player are anticipating a moderate hike in the next price announcement for all PE cargoes though many show reluctance to accept the current levels. “Our main concern is that outlook in the post Lunar New Year term might not be as bullish as expected, hence might only purchase less than usual quantity this time,” a converter commented, adding that end product business normally loses steam after the holiday.

At the meantime, the upstream ethylene market remain directionless and despite strong resistant amid increased supply from Southeast Asian producers, industry sources are not expecting any major fall in prices in the immediate term. This is because of several major cracker shutdowns that possibly cut 460,000 tons of ethylene supply in quarter 1 alone. Detailed on these shutdown are reported on www.commoplast.com.