Asia Daily PP and PE Overview – 22 January 2019

SOUTHEAST ASIA 

·     PP market remains stable to firm 

·     Import PE market sees softer purchasing interest 

Polypropylene (PP)

Regional and international suppliers are very firm on import homo-PP offers to Southeast Asia, citing the lack of inventories pressure. A $15/ton negotiation for Thailand yarn cargoes to bring prices down to $1095/ton CIF Vietnam becomes very difficult at the moment, according to sources.

“Vietnamese homo-PP has reached $1150/ton this week. This is getting less competitive compared to the local market and we might temporarily hold purchases for a while,” an Indonesian buyer commented.  

Polyethylene (PE)

New weekly offers from Thailand and Saudi Arabia producers remain unchanged from last week but it appears that purchasing interest is fading. Apparently, deals for HDPE film from these two makers are ranging $1040-1050/ton CIF Vietnam, LC AS term, which other sellers find it hard to compete. 

“Our customers are not interested in placing bids. The sentiment might continue to deteriorate in the coming week that Lunar New Year is drawing near,” an international trader added.