Asia Daily PP and PE Overview – 14 December 2018

CHINA

•        Local homo-PP market remains stable to soft 
• ·     Import PE gains ground, but face resistance from buyers 

Polypropylene (PP)

Local traders continue offering CNY50/ton ($7/ton) discount on spot homo-PP cargoes, marking the fifth straight session of weakening in this market. Purchasing activities show small improvement as buyers return to make small replenishment to meet the immediate need.

“We have not seen any major movement in the import market. However, at this pace, the pressure might be higher in the coming days,” a local buyer commented.   

Polyethylene (PE)

Interestingly, import PE market is rather firm. Qatari maker lifts offers for LLDPE film by $15/ton from the previous trading day to $1035/ton and $10/ton for LDPE film to $1020/ton, all based on CFR China, LC 60 days term. Deals have been achieved at the new prices.

In the meantime, it become clear that achieving deals for import HDPE film above the $1100/ton threshold is more difficult than initially expected. Market might need more time to adjust to the changes, but buyers are not very confident that the firming trend would sustain.