Asia Daily PP and PE Overview 24 September 2018

There are no trading activities in China market due to the Mid-Autumn Festival holiday.

SOUTHEAST ASIA 

• Limited movement as market awaits new offers from international market
• Tight LLDPE film supply in Indonesia does not push local prices higher 

Polypropylene (PP)

There are very limited movement in the import market mostly due to the lack if new offers from international suppliers. However, Southeast Asian buyers might see a more of stabilizing import homo-PP offers in the coming days considering the continuous strengthening in upstream propylene costs and healthy demand in China that help digesting a good quantity from import market.

“Besides, we have diverted most of the quantity to China last week after bumping into stiff resistance in both Vietnam and Indonesia market. At the moment, we have not received any new allocation,” an international trader informed. 

Polyethylene (PE)

Both major producers in local Indonesia are focusing on producing HDPE at the moment given the poor margins in LLDPE production. This has caused a persistent tightness condition in LLDPE film supply within the country and yet, local suppliers here find it hard to implement any major price hike. 

“We managed to get some LLDPE film quantity at IDR20,500,000/ton ($1379/ton) without VAT, cash equivalent from distribution market. Domestic supply is tight, but imported cargoes are comfortable. If more delays in shipment are reported, the market might see some upward movement in the coming month,” a buyer informed.