Asia Daily PP and PE Overview – 15 December 2021

SOUTHEAST ASIA 

·      Regional homo-PP market remains on the stable track

·      Deals for Saudi PE concluded lower in Vietnam, Indonesia 

Polypropylene (PP)

The Southeast Asian homo-PP market continues to track the stable trend by mid of the week, though transactions are mediocre given the growing fear over the rising number of COVID-19 infection cases that cloud the near-term outlook.

Apart from deals for Indian homo-PP yarn at $1190/ton on the previous day, South Korean cargoes are concluded at $1180/ton in Northern Vietnam today. “But we are not confident about the market outlook ahead, hence, continue to refrain from making new purchases. End-product demand is rather soft,” a household products maker in Vietnam commented. 

The market fear of the worsening outbreak in the country could prompt another round of strict lockdown that would curb demand further. “Any potential rebound would be short-lived because the demand is not strong enough to offer any support,” another market source added.

Polyethylene (PE)

A key Saudi Arabia producer settled January PE shipment with a $20/ton reduction on LLDPE film to $1230-1240/ton, and $30/ton on HDPE film to $1210/ton, all based on CIF Vietnam term. 

Buyers cautiously proceed with purchases while watching closely the emergence of USA cargoes. Indeed, buyers in Indonesia and Vietnam reportedly received offers for trader packaging LLDPE film originated from the USA at $1190/ton CIF term for early February 2022 loading. 

“At this rate, we shall see more of USA materials in the coming months. Further declines are possible, hence, we prefer to buy in hand-to-mouth in the next several weeks,” a buyer added.