Asia Daily PP and PE Overview – 19 December 2018

CHINA

•        Spot market insulated from firming futures trading 
•        Import PP market loses steam; hike in PE faces resistance 

Polypropylene (PP)

Vietnamese homo-PP that claimed sold some quantity in the previous trading day at $1120/ton CFR China, has now agreed to addition $20/ton discount, sending the latest prices to $1100/ton with the same term. 

“We only purchased a small quantity. January is a short month for us, which also offer little optimism. Therefore, we planned not to build too high stock,” a trader added. 

Polyethylene (PE)

By mid of the week, supplier realised that import HDPE film above the $1100/ton threshold is not an easy bite. Deals for Taiwanese cargoes, therefore, have reached $1090/ton LC 90 days while Middle Eastern materials linger in the range $1030-1080/ton, CFR China. 

Domestic spot offers see CNY50/ton discount in the second half of the trading day regardless of the firm futures market. “Buyers just put no more consideration on the futures factor this week. Trading activities are slow and might continue to decline on the slope of uncertain trade-talks outcomes,” a source commented.

SOUTHEAST ASIA 

•       Import homo-PP market holds firm 
•       Deals for PE cargoes done at larger than usual discount 

Polypropylene (PP)

A Saudi Arabia maker lifted homo-PP offers to Vietnam by $20/ton in the previous trading to $1100/ton CIF, LC AS term, has decided on the final price levels at only $10/ton discount. Buyers remain pretty calm with few expressed the intention to accept the hike. 

“Everyone has already stocked up. Some deals for locally held homo-PP yarn cargoes fell below the VND29,000,000/ton including VAT ($1133/ton without VAT), FD Vietnam, cash term, which makes the firming trend in the import ground looks shaky,” a market source said. 

Polyethylene (PE)

It is reported that deals for Malaysian LDPE film in Vietnam reached $1040-1050/ton, a $30-40/ton reduction from the initial price list, while deals for Saudi PE cargoes also see $30/ton reduction, to $1010/ton for LLDPE film and $1050/ton for HDPE film, all based in CIF, LC AS.

In domestic Indonesia market, buyers are rushing to make additional replenishment from local suppliers before going off for the holidays. “We do see market move actively this week, but customers refrain from taking too large quantity. Sentiment might diminish in the coming week in the absence of buyers,” a trader said. 

Detailed price information for PP and PE are on Polymer Prices section.