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CHINA

• Import PP, PE offers continue moving lower 
• Comfortable converters show no rush in making additional replenishment 

Polypropylene (PP)

Traders are offering addition $10/ton discount of import dutiable homo-PP to China on the first trading day of the week in an attempt to stimulate demand here. However, buyers have already stocked up comfortable inventories before and after the National Day holiday and might remain on the sideline longer than expected.

“There are just so much of uncertainties in the medium term outlook. The trade war saga might show more effect in the December period and we plan to be more conservative,” a local trader said.

Couple of panic traders started forward selling locally produced homo-PP yarn for January 2019 delivery at CNY800/ton ($115/ton) below current market levels in light of pessimism expectation. However, it is important to note that this activity has not reached the mainstream trend yet. 

Polyethylene (PE)

New PE offers from Indian and Qatari producers see $10-20/ton reduction week on week, too, and the actual transaction observed is not very strong. Chinese buyers are waiting patiently for further discount, from which many only prefer to source small quantity for now. 

SOUTHEAST ASIA 

• New PE offers emerge at lower levels month on month
• Limited new PP offers, yet expectation remains firm

Polypropylene (PP)

There is only a couple of producers announced new PP offers to the region mostly at stable to firmer levels, however, buyers are more cautious about large purchases at the moment considering the recent softening at the upstream propylene market. 

“We do not expect the market to endure any large hike in the near term just based on the supply tightness condition. Buyers are not having the appetite. Near-term outlook might be capped from the full extent increase,” a market source said.

Polyethylene (PE)

Saudi Arabia and Malaysian maker announced November shipment offers for PE to the region at $20-40/ton month on month, in line with the steep fall in the upstream ethylene costs. Regional buyers are not particularly fond of LLDPE film given the wide presence of USA material at competitive prices at the moment. 

“We are waiting for other makers to announce new prices before making decision. USA LLDPE film prime grade is very competitive now that worried local traders. Besides, we are monitoring if producers would clear out stocks at an additional discount ahead of the year-end season,” a Vietnamese buyer added.