Asia Daily PP and PE Overview – 30 January 2019

CHINA

• ·     Limited trading activities in the absence of buyers
• ·     Local inventories started to rise 

Trading activities in both local and import market are rather slow toward the end of the week, as most buyers have left for the Spring Festival. With some discounts given, spot traders are only able to conclude small quantity during the early hours of the day, but no major development is observed. 

Total PP and PE inventories at Sinopec and CNPC’s warehouses rose 20,000 tons day on day, to 600,000 tons as of 30 January and are expected to maintain the same pace for the rest of the holiday. 

“We have stopped offering by now after concluding 2000 tons of Vietnamese homo-PP at $1125/ton CFR China yesterday. Market is officially on holiday mood,” a Vietnamese trader reported.    

SOUTHEAST ASIA 

• ·     Suppliers started closing all offers 
• ·     Vietnamese buyers rush for last minutes LLDPE film purchases 

Polypropylene (PP)

There is very limited movement in the regional PP market and apparently, many suppliers have stopped/withdrawn the offers. Other sellers are rather firm on the prices claiming the lack of inventories pressure and bright post-holiday outlook. 

“Looking at the current market situation, the firming trend might persist in the post-holiday period. However, we remain concern about a whole new supply that might arrive the market by the end of the quarter,” a regional trader commented.  

Polyethylene (PE)

After nearly a week of constant resisting to the adjusted prices from a Saudi Arabia producer, Vietnamese buyers rush back to make some last minutes purchases before going off for the holiday. Deals have been achieved at $1020-1030/ton for LLDPE film and $1050/ton for HDPE blow molding, all based on CIF Vietnam, LC AS. 

“There are also some inquiries for homo-PP, but obviously, the prices are not matching customers’ buy ideas. Meanwhile, we are unable to conclude any deal for HDPE film at $1090/ton, therefore, these cargoes have been directed to China instead,” a distributor added.