Asia Daily PP and PE Overview – 30 November 2018

CHINA

·      Domestic market remains steady on support from positive futures trading 

·      Import PP, PE market has yet to follow the uptrend in local ground 

Polypropylene (PP)

By the end of the week, Indian homo-PP cargoes are still available at $980-1000/ton CFR China, LC 0-90 days term, which heavily pressure the market sentiment despite the recovery in the local ground. “We are leveraging on the inventories pressure to negotiate for better payment term,” a trader said while reporting having purchased Indian cargoes at $980/ton CFR China, LC 90 days term. 

Other suppliers are complaining about the inability to catch up with the Indian supplier leading to unsatisfactory sales result this week.

Polyethylene (PE)

Overseas sellers seem to have higher priority in depleting cargoes, which explains the continued declining import prices regardless of the firming domestic ground. HDPE film market is falling quicker than expected, with Taiwanese cargoes dealt at $1065/ton CFR China term.

It is important to note that many of the deep-seas cargoes concluded in recent days are meant to arrive in the post-Lunar New Year period. Players, therefore, are taking a more cautious approach for the December and January outlook, fearing that pre-holiday replenishment activities might be just moderate.     

SOUTHEAST ASIA 

·      Deals for Middle Eastern LLDPE film reach $1000/ton

·      Saudi homo-PP breached below the $1100/ton in Vietnam, firm in Indonesia

Polypropylene (PP)

A major Saudi Arabia producer conceded to deals for homo-PP yarn at $1070/ton CIF Vietnam, LC AS term and a good number of customers actually procured the cargoes, yet in small quantity. The producer, however, refused to offer such prices in Indonesia at the moment, leaving buyers here highly puzzled.

“We requested for the price level $1050/ton but the supplier rejected. We decided to only take 100 tons while waiting for clearer market trend,” a Vietnamese buyer commented. All eyes are all the next development in the trade meeting between China and the USA. 

Polyethylene (PE)

Saudi LLDPE film achieved deals at $1000/ton CIF Vietnam, LC AS term, a $30/ton reduction from the initial price list. Distributors reported having sold out all available quantity for this cargo while finding it more difficult to attract deals for HDPE. 

In the meantime, local LLDPE film market in Indonesia continue to slide with locally held Asian cargoes available in the distribution market at IDR16,500,000/ton ($1154/ton) without VAT, FD Indonesia, cash term.