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CHINA

• More import homo-PP offers emerge at reduction 
• Softer PE prices attract moderate buying interest 

Polypropylene (PP)

Import offers for Vietnamese homo-PP emerge at $1305/ton CFR China, LC AS term, dropping approximately $20/ton from last week for the same origin. This is the second week straight that import homo-PP to China follows the softening trend with a limited sign of a rebound in the coming days. 

Sources believed that in order for import ground to regain the momentum, domestic spot market must first improve. At the moment, local market is rather sluggish and traders have been offering discounts since the beginning of the week to stimulate demand.

Polyethylene (PE)

More supplier cutting import PE offers to China in light of plunging upstream ethylene costs. Thailand PE cargoes show up with $150-20/ton reduction week-on-week, yet, buyers have not shown the eager to make fresh purchases citing the lack of competitiveness of these cargoes. “There is still the availability of Taiwanese HDPE film at $1310/ton CFR China term. We are hoping to obtain deals at below the $1300/ton threshold now,” a buyer added.

In the meantime, USA LLDPE film is available at $1020/ton CFR China though buyers are not having the interest to bring these cargoes into China given the 25% import duties. However, re-exporter are placing bids. 

SOUTHEAST ASIA 

• Continued dropping upstream market slows down interest in PP, PE sector
• More PE offers to emerge in the coming day with reduction in expectation

Polypropylene (PP)

There have not been many new offers for dutiable homo-PP cargoes to Southeast Asia market while non-dutiable cargoes hold relatively stable. However, the import PP market started showing some initial signs of weakness as propylene costs step back from the multi-month high levels. 

“Softening upstream costs coupled with the slow down in demand in the nearby China market could play a major role in capping the market from advancing any further,” a Vietnamese buyer commented. The source added the expectation of seeing some minor discount on deals in the coming days. 

Polyethylene (PE)

With ethylene costs in Asia breached below the $1000/ton threshold, buyers here become even more cautious about new purchases. Thailand HDPE film continues traded below the $1250/ton mark in Vietnam, though the quantity is not very large. 

“In the meantime, we place bids for Middle Eastern LLDPE film cargoes at below the $1100/ton mark. We are waiting for the feedback,” a buyer added.