Nov 30, 2022 4:18 a.m.

Daily Market Wrap – SEA – 27 September 2022

On the second trading day of the week, it becomes clear that the regional PP market has now embark on a price correction period. The silver lining is that buyers responded positively toward cargoes priced at the lower end of the overall price range.

Title

Available in

SOUTHEAST ASIA 

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·      The uptrend in the Southeast Asian PP market losses momentum

·      Vietnamese customers show a healthy appetite for PE cargoes 

·      Market participants remain cautious about the near-term outlook

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Polypropylene (PP)

On the second trading day of the week, it becomes clear that the regional PP market has now embarked on a price correction period. The silver lining is that buyers responded positively toward cargoes priced at the lower end of the overall price range.

In fact, a major South Korean producer managed to sell out more than 3000 tons of allocation for both yarn and injection cargoes after conceding to a $20/ton discount from the initial price list, at $1010/ton CIF Vietnam with 0% import duty.

“We think import offers might not breach below the $1000/ton threshold, hence we decided to make small purchases at the price levels as close to the benchmark as possible. In the meantime, we are facing a tough time lifting selling prices in the local market,” a Vietnamese trader added. 

In Indonesia, the PP block copolymer market is battered by competitive South Korean cargoes. Deals have been done below the $1050/ton threshold, according to Indonesian buyers, which put other overseas suppliers in a very unpleasant position.

Supply started to show signs of improvement after a couple of South Korean plants resumed operating after unscheduled shutdowns. There have also been reports that Vietnam’s Hyosung is mulling over restarting the second PP line after a month of being offline. Availability is expected to pick up in the coming weeks, which could impact the market outlook.    

Polyethylene (PE)

In the PE sector, a major Saudi Arabia producer reportedly sold out all available quantities in Vietnam at $1050/ton for both HDPE and LLDPE film and at $1160/ton for LDPE film, all based on CIF Vietnam terms.

The abrupt uptick in buying interest is rather surprising considering the fact that many customers have been expressing concerns over the re-exporting activities from Chinese sellers while the depreciating local currency against the US dollar makes imports more expensive.

“This is partly a result of panic buying after SHARQ announced a major maintenance shutdown in November at two LLDPE lines and the maker will not open a new price list in October. In the meantime, all the concerns are still there,” a Vietnamese trader commented. 

Chinese suppliers might not be aggressive in re-exporting PE cargoes in the immediate term. Even though Chinese buyers managed to secure import parcels at way more competitive levels than Southeast Asian, the available quantities were rather small. Over the past weeks, demand for LLDPE film in the local China market has been steady ahead of the agricultural film season which further reduces the urge to move cargo overseas. 

 

SUMMARY OF IMPORT PRICES (USD/TON) LC AS

Material

Origin

Week 39

Week 38

Market

Combine and Reported by CommoPlast

PPH

India

$1040 - 1070

-

Indonesia

PPH

S.Korea

$1040 - 1080

$1,080

Indonesia

PPH

Vietnam

$100 - 1150

$1110 - 1120

Indonesia

PPH

UAE

$1,070

$1,070

Indonesia

PPH

Thailand

$1,100

$1,120

Vietnam

PPH

Saudi

$1020 - 1090

$1,110

Vietnam

PPH

S.Korea

$1010 - 1040

$1040 - 1080

Vietnam

PPH

India

$1040 - 1045

-

Vietnam

         

PPBC

Vietnam

$1140 - 1150

$1140 - 1150

Indonesia

PPBC

S.Korea

$1040 - 1150

$1070 - 1130

Indonesia

PPBC

Thailand

$1150 - 1180

$1150 - 1180

Indonesia

PPBC

UAE

$1080 - 1100

$1080 - 1100

Indonesia

PPBC

UAE

$1,070

$0190 - 1100

Vietnam

PPBC

Saudi

$1,050

-

Vietnam

         

HDPE Film

Thailand

$1,100

$1,100

Indonesia

HDPE Film

USA

$1050

$1,050

Indonesia

HDPE Film

S.Korea

$1030 - 1050

$1,050

Indonesia

HDPE Film

S.Korea

$1030

$1020 - 1030

Vietnam

HDPE Film

Saudi

$1040 - 1050

$1,050

Vietnam

HDPE Film

Kuwait

$1,040

$1,050

Vietnam

HDPE Film

Thailand

$1,150

-

Vietnam

HDPE Film

Uzkor

$1,070

-

Vietnam

         

LLDPE Film

Saudi

$1060 - 1080

$1060 - 1080

Indonesia

LLDPE Film

USA

$1060 - 1070

$1060 - 1070

Indonesia

LLDPE Film

Thailand

$1,120

$1,130

Indonesia

LLDPE Film

Saudi

$1050 - 1090

$1070 - 1080

Vietnam

LLDPE Film

Thailand

$1,150

-

Vietnam

LLDPE Film

Qatar

$1045 - 1060

-

Vietnam

LLDPE Film

USA

$1060 - 1080

-

Vietnam

LLDPE Film

Russia

$1050 - 1070

$1,070

Vietnam

LLDPE Film

Korea

$1050

-

Vietnam

         

LDPE Film

Thailand

$1,340

$1,360

Indonesia

LDPE Film

Thailand

$1,150

$1,150

Indonesia

LDPE Film

Saudi

$1,200

-

Vietnam

LDPE Film

Thailand

$1,300

$1,300

Vietnam

LDPE Film

Qatar

$1,140

-

Vietnam

LDPE Film

Saudi

$1,160

-

Vietnam

LDPE Film

USA

$1,150

$1,150

Vietnam

         

mPE C6

Singapore

$1320 - 1350

$1350 - 1380

Indonesia

mPE C6

USA

$1200 - 1260

$1220 - 1290

Indonesia

mPE C6

Thailand

$1,250

-

Vietnam

mPE C6

S.Korea

$1230 - 1270

-

Vietnam

mPE C6

UAE

$1,170

-

Vietnam

mPE C6

USA

$1,170

-

Vietnam

Country

Indonesia
Vietnam