Asia Daily PP and PE Overview – 13 December 2018

CHINA

•        Local homo-PP market continues to soften 
•       China import HDPE film market gains premium over Vietnam 

Polypropylene (PP)

Domestic spot market slide for the fourth consecutive sessions, shedding off a total of CNY250-450 ($36-65/ton) in value from last Friday. There are some trading activities, however, the cautious stance is rather heavy here. 

Such plunge in local prices might limit the extent of recovery in the import market, where overseas sellers have been facing difficulties in attracting deals. With the local market drop, import market stable to firm and buyers on the sideline, the Chinese PP market is looking for its direction.     

Polyethylene (PE)

Apparently, Chinese buyers have accepted import HDPE film cargoes in the range $1095-1100/ton CFR China, LC AS term, while prices above this range are still facing resistance. “These levels are higher of those in Southeast Asia. We might leverage this situation to our advantage this time,” a Middle Aastern producer said.  

SOUTHEAST ASIA

•       Overseas sellers plan new offers for January shipment 
•       Regional buyers await further movement in China market 

Polypropylene (PP)

There has not been any abrupt movement in the Southeast Asian PP market toward the end of the week. Regional buyers are watching out for further development in the nearby China market before making any decision, though many have shown no confidence for a strong rebound.

In local Indonesia, lifting prices was more challenging than expected. Traders have to step back on offers to close deals at IDR17,000,000/ton for homo-PP yarn, unchanged from the beginning of the week. A woven bag maker said, “We are covered until the end of February. We fear the demand condition might diminish in the coming months due to uncertainties associated with the general election.”   

Polyethylene (PE)

Overseas sellers are planning offers for January shipment, which might emerge in the coming week. The initial indication poises to a stable to softer trend from December, though a couple of Middle Eastern makers has signaled the plan to divert more HDPE film cargoes to China, where the acceptance is better.