Asia Daily PP and PE Overview 20 November 2018

SOUTHEAST ASIA

• USA suppliers seem taking a firmer stance on LLDPE offers 
• Continued softening homo-PP in China discourages replenishment in SEA

Polypropylene (PP)

With the import homo-PP market in China continues to deteriorate, Southeast Asian buyers become more cautious about making fresh purchases at the moment while maintaining hope to achieve deals for regular Saudi cargoes at $1150/ton and below.

“Domestic market is witnessing dramatic price pressure given that some traders are intentionally releasing the stocks. In addition to the weakening Vietnamese Dong against the US dollar, it is less likely that market could make any rebound in the coming days,” a buyer said while adding that a Saudi maker is collecting bids for yarn grade at $1170/ton CIF Vietnam at the moment. 

Polyethylene (PE)

The $120/ton hike in the ethylene cost based on CFR Northeast Asia term seems giving overseas sellers some encouragement to take a firmer stance on the PE cargoes this week. However, it is an important note that those are merely intention at the moment while the actual market is still red-bath. 

“In fact, our USA suppliers have brought up the plan to hike the offers a little following the strengthening ethylene costs. This might be difficult to achieve now that a huge quantity of previously purchased cargoes is arriving the market soon,” a distributor said and reported selling prime grade USA LLDPE film at $1000-1010/ton CIF Vietnam.