Asia Daily PP and PE Overview 13 November 2018

SOUTHEAST ASIA 

• Import HDPE film market quickens the downtrend 
• Overseas sellers become more open to negotiation for PP 

Polypropylene (PP)

Major South Korean producer reportedly concluded homo-PP yarn at $1200/ton CIF Vietnam, LC AS term for Mi-2 grade, which is used in the production of jumbo bag. Despite the lesser popularity compared to the regular Mi 3-4 grades, such low deal just add more pressure on the market. 

“Outlook is not bright. It is very likely that deep-sea cargoes would slip below the $1200/ton threshold soon. We heard about a deal for Saudi yarn cargoes at $1210/ton today, but decided to be cautious instead of aggressively making new replenishment,” a woven bag maker commented.

Polyethylene (PE)

The HDPE film market is fast catching up with the peer LLDPE film. More and more suppliers are willing to sell at below the $1200/ton mark this week. In fact, a deal for Thailand HDPE film is recorded at $1160/ton CIF Vietnam, LC AS, and shipment to arrive by end of December. “The quantity is only two containers, however, that is enough to shackle up the already fragile market. Customers put more restraint on new purchases now,” a market source commented.

In the meantime, international traders are collecting bid for Saudi Arabia HDPE film at $1180/ton; however, bids are aggressively coming in at below the $1150/ton threshold. Market has established a new benchmark for the deep-sea cargoes.