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Asia Daily PP and PE Overview 8 August 2018Asia Daily PP and PE Overview 8 August 2018 |
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CHINA
Polypropylene (PP)
Trading activities in import homo-PP market remain healthy after major international producers implemented a firmer stance on the available cargoes to this market. Saudi homo-PP yarn reportedly sold in the range $1230-1250/ton CFR China, LC 0-60 days term smoothly, while Vietnamese homo-PP from the newly started up plant sold at $1260-1270/ton CFR China, LC AS.
“As long as the domestic market remains above the CNY10,000/ton mark, demand for import materials would continue to improve in the coming day,” a regional trader commented.
Polyethylene (PE)
There has been a tender for 2000-3000/ton of USA HDPE film that suppliers are inviting for bids, however, Chinese buyers are showing little interest. Players are awaiting the government to announce the retaliate tariffs on imports from the USA, which very likely to include a large portion of petrochemical products, sources said.
“First, HDPE is the weakest performing grade among PE grade throughout the past week and second, the trade war is a big concern. We have very low appetite for USA cargoes at the moment, and until things becomes clearer, we prefer to be conservative,” a local trader said.
SOUTHEAST ASIA
Polypropylene (PP)
Import homo-PP to Indonesia and India started to catch up with the firming trend observed in the peer China and Vietnam market earlier this week. The trend is spreading wider throughout the region; however, many buyers still concern with the escalated trade war between China and the USA.
“Market in on an upswing and we have restocked comfortable quantity at the bottom price. At the moment, we prefer to wait and see on the sideline,” an Indian buyer secured Saudi homo-PP yarn at $1220/ton CIF India, LC AS said.
Offers in both domestic and local ground in Indonesia are firmer. At the time this report is published, import homo-PP yarn below the $1250/ton has technically disappeared. “We sold some quantity at $1260/ton CIF Indonesia today and likely to hold firm in the coming day,” an international trader informed.
Polyethylene (PE)
The regional PE market remains pretty quiet. The market appears to be taking a step back waiting for clear direction as the trade war between China and the USA moved to a new level. Sources fear that the current stabilisation in the import LLDPE film market might prove unsustainable would USA cargoes flow heavier to the region.
“The market would be dominated by Indian and USA cargoes. We plan to be more cautious,” a buyer added.