Asia Daily PP and PE Overview 24 April 2018

SOUTHEAST ASIA 

• Offers for Thai PE fall in Vietnam market 
• International suppliers lifted homo-PP offers to SEA 

Polypropylene (PP)

Several overseas suppliers started implementing an increase of $10-20/ton on import homo-PP to the region in spite of the calm sentiment that blanket the market since the beginning of the week. Transaction is thin at the latest prices and buyers are still having doubt about the sustainability of this development. A Vietnamese buyer reported receiving Thailand homo-PP at $20/ton hike from last week to $1290/ton CIF, LC AS term, said, “We did not place any bid though there have been strong indications that market would remain firm throughout May. Our question is whether this trend could sustain in June given the long Ramadan holiday in this month as well as it is the traditional off-peak season.” 

A similar situation is observed in Indonesia with both Thailand and Saudi Arabia cargoes emerged at higher levels. Other suppliers have yet to open new price list, however, there has been strong intention to adopt similar move in the coming days. 

Limited supply stemming from a series of plant shutdown and strong upstream costs are elevating the PP market, yet, it does make sense for buyers to concern about the medium-term outlook. Besides the long Ramadan holiday in Muslim markets, most of the scheduled turnaround would also resume production by June, which might ease the supply condition to a certain extent. Vietnam’s Nghi Son Refinery and Petrochemical is on track to bring its 370,000 tons/year PP unit on stream by then.  

Polyethylene (PE)

Thailand PE cargoes that witnessed $40/ton increased in the previous week in Vietnam has now found its way back down due to the stiff resistance market posted in response. Latest price list indicated $20/ton reduction to $1350/ton for HDPE film, $1200/ton for LLDPE film and $1220/ton for LDPE film, all based on CIF Vietnam, LC AS term, buyers reported. “It is difficult for suppliers to achieve any major hike at the moment given the fact that most buyers have already restocked over the past several weeks. We are on the wait and see mode at the moment,” a buyer commented.