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CHINA

• Total PP and PE inventories fell as demand gradually come back
• Import market remains on stable to firm trend

Polyethylene (PE)

Total PP and PE inventories at domestic producers’ warehouses fell 50,000 tons day on day to approximate 1.03 million tons as of 23 February 2018, underlining the gradual come back of demand. In fact, traders in Northern China are reporting healthy sales results for LLDPE film and LDPE heavy duty as this market is entering the agricultural film season.

“We managed to deplete about 1000 tons of LLDPE film today after conceding to CNY50-100/ton ($8-15/ton) discount. The overall inventories levels are low and we remain hopeful that buyers would become more active in making purchases in the coming days,” a trader said.  

Polypropylene (PP)

Major Indian maker lifted import offers for homo-PP to China by $15/ton from last month to $1240/ton CFR China, LC 60 days term. Deals have been realized at no discounts. Sources are complaining about limited quantity available not only for Indian origin cargoes but also from Middle Eastern suppliers. “We decided to proceed with a small purchase since most overseas suppliers are not having allocation. The producer continue putting focus on local India market, hence, we are not expecting to see large import arrival in the coming month,” a buyer informed.   

SOUTHEAST ASIA

• Regional producers lifted March shipment offers
• Purchasing activities remain calm

Polypropylene (PP)

More regional suppliers started opening new offers with large hike compared to last month, pedaling on the back of persistent tight supply condition. Latest offers for import homo-PP from Southeast Asian makers show $50-60/ton increased to the range $1340-1360/ton CIF Indonesia, LC AS term. Demand remains relatively slow as many players are still taking conservative stance toward fresh buys.

At the meantime, the optimism regarding near term outlook holds strong among traders considering a number of maintenance shutdown in February – March period. “A major Saudi Arabia producer is not even having any allocation for March shipment resulted from 20 days overhaul starting this week. We believed that market would slowly accept the latest hike,” a trader commented.   

Polyethylene (PE)

Import HDPE continue strengthening, especially offers for Southeast Asian origin, which see another three digits hike from last month. Malaysian HDPE cargoes currently stand in the range $1550-1560/ton CIF Indonesia, LC AS term, which face stiff resistance from buyers here. “We do expect to see some discounts on deals, especially on HDPE, given the recent drastic cut in local distribution market,” a source commented.   

Deep-seas cargoes on the other hand see little changes from the pre-holiday period with an international trader having 200 tons of Saudi origin HDPE film at $1380/ton CIF Vietnam, LC AS term said, “Buyers are bidding, however we have not concluded any deals. Prices above the $1400/ton threshold continue attracting limited buying interest. We are monitoring further development before making decision.”