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SOUTHEAST ASIA 

• Currency depreciation overshadowed the surge in the energy market 
• Weak sentiment with cautious buyers

Polypropylene (PP)

There are more offers for import homo-PP observed in the market, mostly from non-dutiable origins while Middle Eastern suppliers are less active. Indonesian and Chinese cargoes are widely available as reported in the previous day that local demand in these markets is weak.

“Our Chinese supplier agrees to additional $10/ton discount from the previous day to $1280/ton CIF Vietnam, LC AS term and we are considering a new buy. It becomes clear that overseas suppliers are facing pressure to sell and we think room for further reduction is there,” a Vietnamese converter said.

There have been reports that buyers are active in checking on the new prices after crude oil futures regain strength, however, actual deals are rather thin. This is because of the depreciation of the local currencies against the US dollars that discourages purchases of import material. “It is too risky and therefore, we prefer to wait and see first,” a buyer commented. 

Polyethylene (PE)

Major Middle Eastern producer started to finalize July shipment prices for PE after announcing fresh offers earlier this week. Vietnamese buyers informed of receiving $20/ton discounts on deals at $1190/ton for LLDPE film and $1370/ton for HDPE film, all based on CIF Hai Phong, LC AS term. 

“We only take one container for each grade as prices are too high. We are waiting for another producer to announce new offers while hoping to see larger price cuts,” a buyer said.