Asia Daily PP and PE Overview 30 July 2018

SOUTHEAST ASIA 

• Regional LLDPE market might have reached the bottom
• Import PP market calm at the beginning of the week 

Polypropylene (PP)

There are very limited new offers for import homo-PP on the first trading day of the week while it does appear that overseas sellers, especially from the Middle East, are attempting to limit any further price cut in light of reduced inventories pressure. At the time this report is published, no import offers have reached the $1200/ton mark.

In the local ground, the new price list from major producers in Malaysia sees a reduction of $25/ton from last month for homo-PP cargoes as a result of improving supply, weak demand and falling international market. “The reduction would be much larger if it is not for the depreciation of the Malaysian Ringgit. Local demand is not strong,” a trader said.

Polyethylene (PE)

Healthy sales results from major Middle Eastern suppliers last Friday might suggest that Southeast Asian LLDPE film market might have touched the bottom. Regional buyers have not been vocal about such development, however, silently making larger replenishment, just-in-case. 

“We sold nearly 5,000 tons of Saudi Arabia PP and PE cargoes last Friday with 80% being PE to Vietnam and Indonesia market. Buyers have shown greater than expected response and several are requesting for additional quantity. We think the market is regaining stabilisation,” an international trader said.