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SOUTHEAST ASIA 

• Market sentiment remains calm 
• Demand for import homo-PP softens as prices move firmer

Polypropylene (PP)

Import homo-PP market remains pretty steady and deals for dutiable cargoes have been materialized in Vietnam at $1260/ton CIF, LC AS, a $10/ton higher week on week. “Given the supply condition, we think the market might not drop in the coming weeks. We secure 200 tons quantity while continue to wait,” a woven bag manufacturer said.

Dutiable homo-PP to Vietnam currently reach $1260-1290/ton while non-dutiable origin offered at $1285-1300/ton, all based on CIF, LC AS term.

Polyethylene (PE)

There have not been any major movement in the regional import PE market given the fact that buyers started taking more cautious stance following the plunge in the upstream ethylene market. In fact, ethylene costs based on CFR Southeast Asia are currently at the lowest level since 4 August 2017 despite the heavy maintenance shutdown in Fareast region and resilient energy complex. 

Off-grade LLDPE film cargoes originated from the USA emerged in Vietnam at $980/ton CIF, LC AS term, which add more concern to the already cautious market. “We only procure a small quantity fearing that prices might drop further in the coming week. This price level is very competitive at the moment,” a buyer said.