Asia Daily PP and PE Overview 15 August 2018

SOUTHEAST ASIA 

• Regional local markets catch up with international ground 
• Overseas suppliers lifted import offers for USA cargoes 

Polypropylene (PP)

Domestic Indonesia market is having a break from the forward-selling activities among major suppliers here, from which homo-PP yarn priced below the IDR19,000,000/ton has not repeated at the time this report is published. Deals are observed at IDR19,300,000/ton ($1322/ton) without VAT, FD Indonesia – an IDR300,000/ton ($20/ton) discount from the initial price list.

Import market remains largely stable in Southeast Asia with price ranging $1260-1330/ton CIF, LC AS equivalent.

Polyethylene (PE)

After depleting a good number of cargoes to Vietnam, international suppliers started lifting offers for prime grade LLDPE film by $20/ton from earlier this week to $1110-1120/ton CIF, LC 90 days term. Sources are hoping that this is the turning point for the market given the fact that purchasing interest has been strong over the past trading days.

Domestic LLDPE film market in Vietnam is also catching up with mainstream Saudi Arabia parcels reaching VND31,000,000/ton including VAT, FD Vietnam, cash term ($1209/ton without VAT). “At the current market levels, we are able to gain some profit for the higher costs cargoes that just arrived,” a trader said. However, at the moment, only local traders are active while converters are less so.