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CHINA

• Local market continue to deteriorate 
• Overseas sellers agreed to discount on import PE cargoes 

Polypropylene (PP)

Domestic homo-PP yarn market has hit the lowest level in 15 months following the forceful correction over the past seven weeks. The additional CNY200/ton ($29/ton) reduction today in spot offers has not given the market sufficient encouragement to make new buys.

“We started to take some quantity but remain cautious. Prices have been sliding every day over the past weeks and that is very risky. Demand for our end product is regular for now,” a PP container manufacturer said.   

Polyethylene (PE)

Thailand producer conceded to $30/ton discount on import HDPE to China as a result of deteriorating market condition here. Deals have been achieved at another $20/ton reduction, sources reported, at $1150/ton CFR China, and yet customers only pick up small quantity.

“We elected to take more quantity from traders for Taiwanese HDPE film at $1080/ton CFR China. The price gap is too large,” a buyer said.

Irregular Indian and Brazil LLDPE and LDPE film cargoes are mostly traded in the range $950-995/ton with the same term.

SOUTHEAST ASIA 

• Intense negotiation for December shipment
• Indonesia LLDPE film market hits by new low

Polypropylene (PP)

Negotiation for new homo-PP deals is rather intense in Southeast Asia. Buyers are putting heavy effort to press prices to below the $1100/ton threshold seeing the bearish outlook ahead. “We would wait until the supplier agrees to our bids. These cargoes are meant for after Lunar New Year production and therefore, time is on our side,” a buyer bid Indian and Middle Eastern homo-PP at $1050/ton CIF Vietnam reported. 

In the meantime, bids for non-dutiable Chinese cargoes emerge at $1100/ton in Vietnam though suppliers have not agreed to deal. “We are waiting for further development in the China-USA trade-war progress. It is too risky to commit to new replenishment now,” another buyer added.   

Polyethylene (PE)

In Indonesia, prime grade LLDPE film originated from the USA breached below the $1000/ton threshold following an international trader’s decision to boost the competitiveness against Middle Eastern cargoes. In fact, it is reported that deals for about 200 tons of these cargoes have been achieved at $980/ton CIF Indonesia, LC AS term for January shipment, arriving in March 2019. “Market has breached below the psychological threshold and this is very alarming. We have to watch out for next development in the local ground,” a buyer commented.

In Vietnam, the recent storm that hit the Southern City of the country that brought heavy flood did affect some warehouses in the area. It is still uncertain on the extent of the damage caused by the flood, however, traders here are rushing to sell off on-hand inventories, too, in concern that market could turn more sluggish in the near term.