Asia Daily PP and PE Overview 12 September 2018

CHINA

• Improved deals for import homo-PP cargoes 
• More overseas sellers cuts offer to China, local ground holds steady 

Polypropylene (PP)

Buyers’ hunt for discounts in the import homo-PP market might temporarily end here as the number of deals for dutiable cargoes showed a significant pick-up. Three Saudi Arabia makers closed deals for yarn at $1210-1220/ton and $1230/ton respectively for quantity 200-300 tons while Indian materials concluded at $1215/ton, all based on CFR China, LC AS term. 

Buyers also reported purchasing S-Oil homo-PP injection (blank packaging) at $1190/ton CFR China. It is important to note that converters do most of the deals while traders are concentrating on the local ground at the moment. 

Polyethylene (PE)

Major Singaporean maker slashed metallocene PE (mPE) offers to China by $20/ton week on week to $1290-1300/ton on the back of persistent sluggish demand condition. “Currency depreciation also played a role in the latest round of price reduction. The thing is buyers are not showing strong interest even after the adjustment,” a distributor informed.

Trading activities in local ground meanwhile hold steady, which contributed to the 30,000 tons reduction in total inventories at Sinopec and CNPC’s warehouses from the previous trading day to 740,000 tons as on 12 September. 

SOUTHEAST ASIA 

• More overseas sellers slash import HDPE film offers
• Regional homo-PP market face real struggle to firm up 

Polypropylene (PP)

More import offers for homo-PP emerge in the market mostly at stable to softer levels from last week. Saudi homo-PP yarn offered in Indonesia in the range $1240-1255/ton CIF, LC AS term, $5-15/ton reduction. “Buyers with BMTDP continue to procure the cargoes to fulfil the assigned quota. Besides, supply for Middle Eastern materials are not high, too,” an international trader said.

In Vietnam, Saudi materials are traded in the range $1250-1260/ton CIF term, however, sales are not very strong. “We think it is tough for import PP market to increase sharply in the near term because most buyers have replenished comfortably at the lower price levels while end product demand is very weak,” a woven bag maker added.

Polyethylene (PE)

After deals for Kuwait HDPE film concluded in Vietnam earlier this week at $1280/ton CIF, LC AS term that stir market concern and casting a shadow on the near-term outlook, more producers started offering a larger discount on the grade.

In fact, Thailand HDPE film cargoes are dealt at $1280/ton with the same term in Vietnam, though the available quantity is not too large. Meanwhile, Singaporean HDPE film sees $30/ton dropped week-on-week to $1390-1400/ton CIF Indonesia. “We could only achieve the lower end price if the purchased quantity is large enough. It does appear that overseas sellers are facing increasing pressure,” a buyer said.