Asian PP, PE market quiet ahead of USA presidential election

Regional market is rather quiet today and players are delaying their purchasing decisions to monitor the outcome of the USA presidential election, which is believed to have significant impact on the commodity and financial sector.

In fact, most international suppliers are maintaining their PP and PE offers stable to the region and limited transaction has been reported. A regional trader commented, “The commodity plastic industry might face brand new uncertainties depending on the result of the USA election. Fluctuation of the currency exchange rate and energy values would have adverse effect on the general sentiment. We prefer to monitor further movement before deciding on our replenishment.”

Another domestic trader in Vietnam said, “Trading activities are very slow these few days though we keep our offers unchanged in local market. Players are observing the possible impact of the USA election on the market before taking position. Demand for HDPE bags remain very weak and considering the high uncertainties levels, we hold conservative stance for now.”

Meanwhile in China, futures prices on Dalian Commodity Exchange ended the first half of today’s session with drastic hike, yet spot PP and PE prices in local market witness small discount of CNY50-100/ton ($8-15/ton) due to weak buying interest. A trader informed, “Market might turn really volatile depending on the election result. Traders are especially taking cautious stance at the moment though inventories on hand are low.”

A Middle Eastern producer added, “Most of our manufacturing customers, who are active in exporting to Western market, have yet to see the impact on the end product orders. However, we might need to wait and see. So far, our PE sales in China have been surprisingly healthy in recent weeks, total contrasting with the sluggish condition in Southeast Asia region.”

The implication of USA presidential election on the petchem industry is not very clear at the moment. Several players have said that business will have to go on as usual.