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CHINA

·     Buyers cautiously assessing the market 

·     Import offers for PE seems firmer than PE as trading resumes 

Polypropylene (PP)

Chinese buyers have not been very active on the first trading day after the long weekend holiday. Buyers are cautiously waiting on the sideline to have clearer market direction, especially following the weakness in futures trading. 

Traders open new offers for import homo-PP at relatively softer levels compared to last week at $1030/ton for Indian origin and $1050-1060/ton for Saudi Arabia origin. Sources expected buyers to become more active during the first half of the month and might gradually take off for Lunar New Year by the second half.  

Polyethylene (PE)

Several overseas sellers announce fresh PE offers to China at mostly unchanged levels week-on-week. However, buyers have not shown the strong eager to place bids immediately.

“Overseas sellers seem having less inventories pressure. We are waiting for buyers to come back to the market. The immediate term outlook is positive to us,” a trader commented.  

SOUTHEAST ASIA 

·     Limited movement as holiday mood persists

·     Market await pre-Lunar New Year replenishment 

Polypropylene (PP)

There are very limited new offers in the market since most players are still having holiday mood. However, it appears that sellers have no other choices but to keep prices stable for the time being. In fact, duty-free Thai homo-PP emerges in Vietnam at $1100/ton CIF, LC AS – unchanged from the pre-holiday period.

“We do not expect any sudden surge in prices in the near-term. Buyers are very cautious given the uncertainty in the first quarter of this year. We are unable to sell any Saudi cargoes at $1080/ton until now,” an international trader reported.

Polyethylene (PE)

A major Saudi Arabia producer maintains final price for LLDPE film from the previous week at $1010/ton CIF Vietnam, LC AS though transactions are not strong. Meanwhile, another Saudi Arabia maker complained about the inability to attract sufficient deal for PE cargoes at $1060/ton for LLDPE film and $1120/ton for HDPE film, FCA Vietnam.

“The HDPE film market might continue to face pressure in the coming month given the tightening environmental control placed on the plastic bag sector,” a Vietnamese trader added.

The Vietnamese government has been inspecting HDPE bag manufacturing plants to ensure the compliant with the environment regulations while lifting green tax on the plastic bags sector. Many local oriented converters are lowering operating rate, leading to lower demand for this grade. 

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