Nov 24, 2024 11:30 p.m.

Asia Daily PP and PE Overview – 23 May 2019

Asia Daily PP and PE Overview – 23 May 2019

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CHINA

·      Local market loses momentum 

·      Limited trading activities in the import ground

Polypropylene (PP)

Apparently, the firming trend in the local ground is cooling off following the plunge in the futures market. Inventories at major local producers’ warehouses have dipped below the psychological mark, yet local suppliers are not confident enough to maintain firm stance on the spot offers. Instead, a discount of CNY50-100/ton ($7-14/ton) immediately emerges as the futures trading weaken.

The near term market outlook is a rather cloudy, sources said, citing the new startup that adds more supply to the market. Together with the escalating trade tension between China and the USA, demand is expected to remain mediocre.  

Polyethylene (PE)

A major Thailand producer agreed to $5/ton discount on LLDPE film to close deals at $1010/ton CFR China, LC AS term. There have been reports that buyers off-take few thousand tons of these cargoes considering the duty-free benefits.

 

Meanwhile, market is not showing great interest in other cargoes fearing that resumed falling local ground might force overseas sellers to concede to further price cuts.  

 

Grade

Local (EXW China, cash, Yuan, Included VAT)

Import (CFR China, LC 0-90 days)

 

Week 21/2019

Week 20/2019

Week 21/2019

Week 20/2019

Homo-PP

8450-8800

8350-8700

1140-1180

1080-1130

HD film

8600-9200

8550-9200

1050-1130

1090-1180

HD b/m

-

-

1020

1100-1130

HD yarn

-

-

-

1160-1165

LD film

8150-8950

8000-9000

990-1020

1050-1120

LD h/duty

-

-

-

1100-1120

LL film

7800-8300

7700-8250

930-1015

950-1065

mPE

-

-

-

1300

 

SOUTHEAST ASIA 

·      Middle Eastern LLDPE film touches the $1000/ton mark 

·      Riot poses minimal effect on Indonesia PP, PE market 

Polypropylene (PP)

The regional PP market remains mostly unchanged from the previous trading day. However, suppliers continue facing difficulties in attracting deals as customers remain on the sideline to wait for more discounts.

It appears that the recent riot in Indonesia has not impacted trading activities in the country significantly. Sources commented that demand is diminishing as buyers embrace the holiday mood while manufacturers are rushing for final delivery before the road ban takes place. 

“Business is as usual. Purchasing activities have been declining ahead of the long holiday; therefore, we do not see any major impact from the riot. We hope demand would pick up in the post holiday term,” a trader said.  

Polyethylene (PE)

A Middle Eastern supplier has agreed to concluded deals for PE to Vietnam at $1000/ton for LLDPE film and $1060/ton for LDPE film, all based on CIF, LC AS term. Buyers fear that import LLDPE film prices might soon breach below the $1000/ton mark given the sluggish sentiment and the recent downtrend in the nearby China market.

“Meanwhile, we expect demand to pick up in Q3 as year-end order kicks in. As a result, we do not have any plan to slash prices too steeply. We would announce June shipment offer in the coming week,” a Saudi Arabia producer opined. 

SUMMARY OF IMPORT PRICES TO SEA MARKETS (USD/TON)

 

 Material

 Origin

 Week 21

 Week 20

 Market

 Term

 PPH Yarn

 Saudi

1140-1170

1160-1180

 Indonesia

 LC AS

 PPH Yarn

 Vietnam

1145-1170

1190-1200

 Indonesia

 LC AS

 PPH Yarn

 Malaysia

1200

-

 Indonesia

 LC AS

 PPH 

 India

1140

1140-1150

 Indonesia

 LC AS

 PPH Yarn

 China

1150

1100-1120

 Vietnam

 LC AS

 PPH Yarn

 India

1150

1170

 Vietnam

 LC AS

 PPH Yarn

 Saudi

1140

1160

 Vietnam

 LC AS

 PPH Yarn

 Thailand

1150

1155

 Vietnam

 LC AS

 PPBC

 Malaysia

1230

-

 Indonesia

 LC AS

 HD Film

 Saudi

1080-1110

1080-1110

 Indonesia

 LC AS

 HD Film

 Saudi

1110

1110-1120

 Vietnam

 LC AS

 HD Film

 Kuwait

1100

-

 Vietnam

 LC AS

 HD Film

 USA

1020

1020

 Malaysia

 LC AS

 HD Film

 USA

1020

1050

 Indonesia

 LC AS

 HD Film

 Malaysia

1160

-

 Indonesia

 LC AS

 HD Inj

 USA

1000

1000

 Malaysia

 LC AS

 LL Film

 Saudi

1040

1050-1080

 Vietnam

 LC AS

 LL Film

 Kuwait

1025

-

 Vietnam

 LC AS

 LL Film

 Qatar

1000

-

 Vietnam

 LC AS

 LL Film

 Saudi

1020-1030

1030-1055

 Indonesia

 LC AS

 LL Film

 Canada

990-1010

-

 Indonesia

 LC AS

 LL Film C6

 USA

980

-

 SEA

 LC AS

 LD Film

 Saudi

1130

1140

 Vietnam

 LC AS

 LD Film

 Malaysia

1150

-

 Indonesia

 LC AS

 LD Film

 Qatar

1060

-

 Vietnam

 LC AS

Country

China
Indonesia
Malaysia
Vietnam