Asia Daily PP and PE Overview – 21 December 2018

CHINA

•     More deals for import homo-PP fell below $1050/ton mark
•    Transactions for PE declined on firmer stance from sellers

Polypropylene (PP)

The rebound in import homo-PP market has lost its momentum. More deals for Middle Eastern cargoes are achieved in the range $1000-1050/ton CFR China, LC 0-90 days term.

The softer sentiment is local ground is pressurizing import offers. Domestic sellers are offering CNY50-100/ton ($7-16/ton) discount on spot cargoes, signaling the continued need to deplete stocks. “We are seeing some small inquiries following the discount. Buyers are very cautious, which might limit market’s ability to show strong rebound,” a trader said. 

Polyethylene (PE)

The diverged development continues to take place in the import PE market. Suppliers for regular cargoes originated from Asia and Saudi Arabia are attempting to stabilise offers but irregular materials keep attacking the effort. 

Cargoes from Azerbaijan and Mexico are at the lower end of the overall prices range. Though customers are not aggressively purchasing these materials, many take these offers as a benchmark to negotiate with other sellers. 

SOUTHEAST ASIA 

•      Limited transactions as the market enter the holiday mood 
•      Firmer ethylene costs have not supported PE prices 

Polypropylene (PP)

The import homo-PP market remains pretty calm after a major Saudi Arabia producer stepped back on prices to Vietnam to $1070/ton from the initial price list of $1100/ton CIF, LC AS term.

“We do not plan to chase after the price adjustment. Market sentiment is weak but at the same time we are not having sales pressure,” a distributor said while maintaining a firm stance on Middle Eastern cargoes at $1100/ton mark. 

Polyethylene (PE)

Ethylene cost based on CFR Southeast Asia jumped $60/ton by the week ending 21 December 2018, however, the downstream PE market has not seen much of support.

Buyers in Indonesia and Philippines are taking off for the Christmas holiday, and sentiment might dim further in the coming week. “We have to wait and see. Prices are unable to firm up during the manufacturing season and we are not confident that the market could rebound after the Lunar New Year. Supply is just too ample in local ground,” a Vietnamese trader commented. 

Detailed price information for PP and PE are on Polymer Prices section.