Asia Daily PP and PE Overview – 28 January 2019Asia Daily PP and PE Overview – 28 January 2019 |
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CHINA
· Local sentiment weakens as buyers leave for Spring Festival
· Demand for import HDPE film remains healthy
Polypropylene (PP)
As expected, trading activities in the local market are getting slower since most manufacturers started taking off for the Lunar New Year holidays. Having said so, traders continue seeking for cargoes priced at the lower end of the overall price range to be delivered by the second half of February, making the market not completely stand still.
In the import market, buyers here apparently have accepted dutiable cargoes in the price range $1060-1090/ton depending on the origins, which might support the sustainability of the firm trend in the regional PP market.
Polyethylene (PE)
Apparently, buying interest for import HDPE film from regular sources remains healthy even with the Spring Festival is drawing near. A Saudi Arabia producer reported sold out February allocation to China at $1080-1100/ton for HDPE film and at $1040-1050/ton for LLDPE film.
“We have directed more HDPE film allocation from Southeast Asia market to China due to better demand in this market. More inquiries for this grades are coming in, but not so for other grades,” a source close to the producer informed.
SOUTHEAST ASIA
· Import homo-PP remains on the up-trend
· Regional PE market calms despite healthy demand for HDPE film in China
Polypropylene (PP)
A couple of overseas and regional suppliers has opened fresh homo-PP offers to the Southeast Asia market at the stable to $10/ton higher than last week. Apparently, purchasing interest is not very strong as the holiday mood started blanketing the market.
At the time this report is published, dutiable cargoes are at $1100/ton and ASEAN materials ranges $1110-1140/ton, CIF, LC AS.
“We bid Saudi materials at $1080/ton, unchanged from deals last week. Suppliers are rather firm, but we are rather unconfident about the post-holiday outlook,” a converter said.
Polyethylene (PE)
After stepping back on HDPE film offers to $1090/ton CIF Vietnam, LC AS term, a Saudi producer still faces tremendous difficulties in attracting sufficient deals. This is because of the availability of competitive Thailand cargoes at the moment. Traders are hoping that healthier demand for HDPE film in the near-by China market could stimulate the sentiment in SEA in the coming days.
Meanwhile, local LLDPE film market is Indonesia is now a red bath with locally held USA LLDPE C6 film fell to IDR15,140,000/ton ($1078/ton) without VAT, FD Indonesia.
Country
China
Indonesia
Vietnam