Asia Daily PP and PE Overview – 8 January 2019

SOUTHEAST ASIA 

·     Market remains sluggish despite the improved sentiment in China 

·      Local HDPE film market in Indonesia race lower

Polypropylene (PP)

In the absence of Middle Eastern suppliers, Asian sellers opted to maintain import homo-PP offers unchanged week-on-week to the region. Price list ranges $1100-1130/ton, CIF Southeast Asia, LC AS term.

“Demand is very sluggish. Customers continue bidding for larger discount, which we are unable to accommodate. Lunar New Year is around the corner and we hope to see some pre-holiday replenishment activities in the coming days,” a trader offer Philippines homo-PP at $1105/to to Vietnam said. 

Polyethylene (PE)

The regional PE market is still not active in spite of the better transactions observed in the near-by China market. Although suppliers for USA materials have been maintaining offers relatively stable over the past several weeks, buyers are just not very confident about the post-Lunar New Year outlook.

In local Indonesian market, sellers are racing to cut HDPE film prices with forward selling cargoes can now reach IDR16,300,000/ton ($1160/ton) FD Indonesia, excluding VAT, cash term. Comfortable supply and soft demand are to blamed, sources said.