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CHINA

• Southern China market quiet after super typhoon
• Import PE market started seeing larger price cut 

Polypropylene (PP)

Trading activities in Southern China market are paralyzed following the super typhoon Mangkhut. Most main road and railways are shut for cleaning effort while a couple of major petrochemical warehouses are flooded, however, it is unclear on the extent of damage at the moment. “The bottom part of a number of our pallets is soaked. We most probably can’t sell at the normal price,” a trader informed.

Import offers for regular Saud Arabia homo-PP yarn is available at $1230/ton CFR China, LC AS, unchanged week on week, yet the interest isn’t up to expectation.

Polyethylene (PE)

Import HDPE film and LLDPE film started seeing larger discount on the first trading day of the week. It is reported that Taiwanese HDPE film concluded more than 1000 tons last Saturday in the price range $1290-1300/ton LC 0-90 days term. Meanwhile, Canada LLDPE film sees $50/ton reduction week on week to $1150/ton CFR China.

Chinese buyers expect more producers to cut prices in the coming days in an effort to stimulate pre-holiday replenishment and depleting inventories ahead of the year-end season.

SOUTHEAST ASIA 

• Import HDPE film continue moving lower 
• Import homo-PP remains on stable to softer track, limited buying interest 

Polypropylene (PP)

Two major overseas suppliers announced fresh weekly offers for import homo-PP to Vietnam at the unchanged level from last week, however, buyers are not showing much interest despite the constant supply tightness condition. Saudi Arabia cargoes are offered at $1260/ton for yarn and $1250/ton for injection, all based on CIF Vietnam, LC AS term. Vietnamese buyers think that deals should derive at the range $1230-1240/ton for yarn, with the same term.

In Indonesia, the same producer open new price at $1240/ton for homo-PP yarn and buyers here are taking more cautious stance amid the weak local currency.  

Polyethylene (PE)

Import HDPE market witnesses further drop with Indian HDPE yarn fell below the $1200/ton threshold to $1190/ton CIF Vietnam, LC AS term. Meanwhile, irregular Nigeria HDPE film cargoes emerge at below the $1250/ton mark. 

Players fear that the downtrend might persist in the coming weeks considering the current supply-demand dynamic. There have been market talks that the plunge in HDPE pipe prices as demand for this grade from Chinese buyer dimmed has encouraged producers to switch back to film grade, leading to more availability.

Market is now monitoring the potential impact of the recent adjustment in import tariff schedule in the USA that zero-rated the duties for hundred of plastic end products. The regulations only revert the tariffs before the trade war, which means many countries besides China would have benefited from the better opportunity to export to the USA.