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There are no trading activities in China this week due to the National Day holiday. Market will resume working on 8 October 2018.

SOUTHEAST ASIA 

• Import homo-PP shows signs of firming up 
• Plunged ethylene costs add more pressure on PE market 

Polypropylene (PP)

A major Thailand producer announced new homo-PP offers to Vietnam with $20/ton increased after maintaining prices unchanged for weeks. Latest prices list has reached $1285/ton for homo-PP yarn and $1315/ton for PP film, all based on CIF Vietnam, LC AS term. Other producers have not announced new offers.

Respond is not very healthy. Despite the fact that upstream propylene costs have increased evidently and energy complex reaches multi-year high levels, buyers just too conservative. “This is because end product demand is not strong. We are looking at South Korean cargoes that offered at $15/ton lower,” a woven bag maker informed.

Polyethylene (PE)

Suppliers continue complaining about difficulties in attracting deals for HDPE cargoes at the price levels $1270-1280/ton. “We are inviting for bids at $1260/ton for Kuwait HDPE film and yet, very few customers show interest. Sentiment is rather bearish,” an international trader offering Kuwait HDPE film at $1280/ton CIF Vietnam said.

In Indonesia, distributors continue selling at below producer’s price list regardless of the tight supply condition resulting from the low operating rate at both of local producers and the continued depreciated local currency. “Demand is there, just that import arrival is too heavy,” a distributor explained.