Asia Daily PP and PE Overview 14 August 2018

SOUTHEAST ASIA 

• Import PP offers emerged at stable to firmer levels
• Non-USA LLDPE and LDPE film cargoes show sign of firming up 

Polypropylene (PP)

Major regional and international PP suppliers opened new import offers at a stable to slightly firmer levels from last week, though buying interest is not as strong as expected. Sources continue to concern over the currency crisis in Turkey, which might hamper demand for homo-PP in the near to medium term.

Thailand homo-PP yarn and injection are concluded at $1265/ton CIF Vietnam, LC AS term. Limited quantity is available due to the on-going maintenance shutdown at part of the plant. “We have made comfortable replenishment in the previous week. We used to export to the USA and due to the on-going antidumping investigation on Vietnamese packaging products, we have not received any orders from USA customers since June,” a woven sack manufacturer informed.

Polyethylene (PE)

Import PE cargoes, concentrated on HDPE injection, blow moulding and LLDPE film, originated in the USA are widely available in the open market. Vietnamese buyers have shown especially strong interest for these parcels, which resulted in active purchases over the past several trading days. “Recycle materials are very short in the local market since the government tightened the regulations on import plastic scraps. We decided to take more near-prime and off-spec cargoes to fulfil the supply gap,” a buyer commented.

Non-USA LLDPE and LDPE film cargoes, on the other hand, started to firm up. Saudi LLDPE film emerged in Vietnam at $1180-1190/ton CIF, LC AS term with deals reported at $1170/ton. Several local traders here have expressed the plan to withhold mainstream Saudi LLDPE film cargoes fearing that a fundamental change in the flow of materials after China imposes 25% tariffs of USA PE cargoes might result in specific grade shortage in Vietnam market.