Asia Daily PP and PE Overview 6 August 2018

SOUTHEAST ASIA 

• Limited movement in regional PE market 
• Import homo-PP started to firm up, buyers resist the anticipated hike 

Polypropylene (PP)

Overseas suppliers started lifting import homo-PP to the region citing that market has bottomed out and that nearby China market has accepted higher prices. In fact, a major Saudi Arabia maker sold homo-PP yarn to Vietnam in the previous week at $1235-1240/ton and injection at $1215/ton, CIF, has now suspended all offering to this market.

“We managed to achieved deals for both yarn and injection cargoes in China at $1240/ton and therefore, have no interest in accepting lower bids from SEA buyers,” a source close to the producer informed.

Other origins, including Vietnamese and Indian cargoes, are witnessing $10-20/ton hike week on week.  

Polyethylene (PE)

There are very limited movements in the regional PE market on the first trading day of the week, however, several suppliers have brought up a firm assurance about lifting prices for the new offers. 

“Buyers are still reluctant amid the increased uncertainties tag along with the escalated trade war. However, we believed that the market has no more room for further reduction. It is time for an up-cycle,” a market source commented.