Asia Daily PP and PE Overview 25 September 2018

CHINA

• Domestic market remains steady with some resistance on the upper end of prices 
• Purchasing interest in import homo-PP holds strong 

Polypropylene (PP)

It appears that Chinese buyers are still in need of more homo-PP cargoes. Returning from the long weekend holiday, deals for import homo-PP remain strong despite some increases in prices compared to last week.

A regional trader, who sold more than 10,000 tons of Vietnamese homo-PP to China last week, reportedly sold additional 1000 tons of the same cargoes today at $1260/ton for yarn and $1270/ton for injection grade, all based on CFR China, LC AS. The latest deals indicated approximately $10/ton increased week-on-week. 

Meanwhile, Indian homo-PP yarn sees deals for 600 tons at $15/ton higher than last week, at $1240/ton CFR China term. “We add $10/ton to second-tier buyers and there is still some interest there,” a trader purchased the cargoes informed.

Polyethylene (PE)

There are very limited new offers for import PE with LLDPE film Mi-1 originated from India maintains as the floor-pricing at $1090/ton CF China, LC AS term. Apparently, the number of deals concluded for PE does not seem as strong as PP, however, sources believed that surging upstream ethylene costs could support the stable trend in the near term. 

SOUTHEAST ASIA 

• Market remains calm, ignoring the active sentiment in China
• More maker announced PE offers with reductions 

Polypropylene (PP)

There are very limited new offers for import homo-PP observed in Southeast Asia market mostly due to the fact that overseas sellers find China a more attractive destination at the moment. However, regional buyers continue remaining calm without any concern about availability in the near to medium term.

“We received a limited quantity for Saudi Arabia homo-PP yarn at $1250/ton CIF Vietnam, a $10/ton higher than last week. The thing is demand for our end product is not strong; hence we are a bit reluctant, a woven bag maker informed.

Polyethylene (PE)

Another Saudi Arabia producer introduced $20-30/ton reduction on October shipment offers for PE, sending latest price list to $1140-1150/ton for LLDPE film and $1300/ton for HDPE film to Vietnam and at $1110-1120/ton for LLDPE film and $1280/ton for HDPE film to Indonesia. 

Vietnamese buyers did not respond very positively, especially toward HDPE film cargoes. The general concern is that local HDPE film market might fall further in the near term once the huge trunk of near prime and off-grade cargoes originated from the USA arrive the market. “Couple of other suppliers have already agreed to deals for HDPE film at $1260-1270/ton CIF Vietnam, and therefore, it is less likely that buyers would accept prices at higher levels. We placed bids for LLDPE film at $1120/ton,” a buyer said.