Asia Daily PP and PE Overview 20 August 2018

SOUTHEAST ASIA 

• Limited trading activities ahead of new price announcement

• Regional and international suppliers expressed firmer sell ideas for September

Polypropylene (PP)

There has not been many new offers for import homo-PP on the first trading day of the week as many participants are away for the APIC conference in Kuala Lumpur while Middle Eastern market is embracing the Eid Al Adha holiday.

“We are cautiously waiting for new offers from regional and international suppliers. The downside risk is high looking at the energy complex and Turkey market at the moment,” a regional buyer commented.

Polyethylene (PE)

Couple of regional and international suppliers have brought up the plan to implement small to moderate hike on September shipment offers for PE cargoes to Southeast Asia. Such intention is perceived as reasonable considering improved buying interest in the near by China market and resilient upstream ethylene costs.

“Many Middle Eastern suppliers prefer to divert attention to China market now for better netback, leaving USA materials dominating the Southeast Asia region. This is alarming for us since we only use specific Saudi PE cargoes” a converter added.