Nov 25, 2024 6:49 a.m.

Asia Daily PP and PE Overview 9 August 2018

Asia Daily PP and PE Overview 9 August 2018

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CHINA

  • Latest trade spat pinches PE market; PP remains optimistic
  • Market watches out for next possible direction 

Polypropylene (PP)

The import homo-PP market remains unaffected by the latest trade spat between China and the USA that enlisted a number of petrochemical products to the 25 per cent import duties. Transactions for import homo-PP are reported to be healthy and several major Saudi Arabia suppliers claimed sold-out allocation at $1230-1250/ton CFR China, LC 90 days term. 

Polyethylene (PE)

With most major PE grade originated from the USA are subject to the 25 per cent import duties, traders who purchased these cargoes previously are now pushing to the other destination, of which, Southeast Asia appears to be the next best fit. There has been a mild chaos, as a result, however, the market seems to be settled by the end of the trading day. 

“We are having about 500 tons of off-grade LLDPE film and 800 tons of HDPE injection that just left USA port. We are looking for buyers in Southeast Asia and hope to amend the destination port soon. We are focusing on resolving the immediate problem before planning for the longer term,” a trader informed.   

SOUTHEAST ASIA 

  • Limited import homo-PP offers as suppliers look to introduce new hike 
  • Regional buyers received increased number of USA materials offers 

Polypropylene (PP)

There are very limited new offers for import homo-PP toward the end of the week as most suppliers either claimed sold out or withdrew all offerings. Looking at the current momentum, it is undeniable that overseas sellers would attempt small to moderate hike in the coming days, though sources are expecting slower buying interest at the same time.

“This is because many buyers have already secured the needed quantity and might withdraw to the sideline once prices go up,” an international trader explained.  

Polyethylene (PE)

Southeast Asian buyers started receiving a higher number of offers for import PE originated from the USA as the latest trade spat between China and the USA pushes sellers to divert cargoes that were initially destined for China to other markets. 

USA LLDPE film, Mi: 1, the prime grade is available at $1095-1100/ton while off-grade are traded in the range $1050-1060/ton CIF Southeast Asia, LC AS. “There are also HDPE injection cargoes at $1140-1165/ton with the same term. We are discussing with the supplier to obtain some quantity although the shipping time is very long,” a buyer informed.