Asia Daily PP and PE Overview – 24 December 2018

CHINA

•        Domestic PP offers see additional decreases 
•        Import HDPE film market is quieter than LLDPE film 

Polypropylene (PP)

From a small reduction of CNY50/ton ($7/ton) at the first trading hours of the day to a large discount of CNY200/ton ($29/ton) by noon, domestic suppliers are not having any support to suspend the downtrend that has been in place since last week.

There have not been many new offers from overseas suppliers, but with the on-going development in the domestic spot market, it is less likely that the import market could regain strength soon. Demand condition is deemed sluggish at the moment.

Polyethylene (PE)

Apparently, more deals for import LLDPE film is observed than HDPE film on the first trading day of the week. In fact, there are transactions for South Africa at $960/ton CFR China, accounted for about 2200 tons in total quantity while Taiwanese LLDPE film is concluded at $1035/ton with the same term.

Many overseas sellers are determined to keep import HDPE film prices above the $1100/ton threshold, and this is one of the reason deterring buying interest from Chinese buyers. These price levels are at premium over Vietnam market.

SOUTHEAST ASIA 

•        Saudi maker agreed to a larger discount on import homo-PP cargoes 
•        Regional PE market mixed, but the sentiment is rather sluggish 

Polypropylene (PP)

A major Saudi Arabia producer, who insisted on import homo-PP cargoes to Vietnam at $1100/ton in the previous week claiming lack of inventories pressure, has finally agreed to deal at $1070/ton CIF, LC AS. Weak demand is giving suppliers hard time lifting prices despite the stronger upstream propylene costs.

Market continue to discuss the potential outlook in the post-Lunar New Year term with most concern placed on the end of the trade war truce between China and the USA on the 1 March.  

Polyethylene (PE)

There is a well mixed in the regional PE market on the first trading day of the week. While some suppliers decided to take a firmer stance on the cargoes, others moved otherwise.

“It all depends on how much inventory pressure a producer has. For us, we started to see a slower reduction rate in LLDPE film offers. We hope the market would head for stabilization,” a regional trader added. 

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