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SOUTHEAST ASIA 

• Dutiable homo-PP touches $1150/ton mark in Vietnam 
• PE market outlook remains cloudy on increased supply levels

Polypropylene (PP)

There is no surprise that traders started offering Indian homo-PP yarn at $1150/ton CIF Vietnam, LC AS term, which buyers have been waiting patiently on the sideline for. However, purchasing interest remains pretty limited given the fact that there has not been any strong sign of a bottom anytime so soon. 

“We are minimizing price risk at the moment. Demand in China is not strong and therefore, the spill-over effect on Southeast Asia market is rather imminent,” a regional woven bag maker said. 

Polyethylene (PE)

There have not been major movements in the regional PE market as players are waiting for major overseas producers to announce fresh price list. Support from the recovery in the upstream ethylene market continues to be limited and it appears that sellers are having a greater intention of depleting inventories. 

“We plan to open new offers at around $1050-1060/ton for LLDPE film and $1150-1160/ton for HDPE film. Outlook in the nearby China market is bleak, hence we will have to see how Southeast Asian buyers respond,” a Middle Eastern producer said.