Asia Daily PP and PE Overview – 9 January 2018

SOUTHEAST ASIA 

·     Some minor pick up in demand for LLDPE film observed in Vietnam 

·      Regional PP market struggle to firm up 

Polypropylene (PP)

Demand for import homo-PP in major markets in the region remains below expectation mostly due to comfortable inventories on buyer’s hands. Suppliers complained that buyers refused to lift bid prices regardless of the stronger energy complex and the upstream propylene costs.

“Malaysia’s PRefChem is on track for the trial run at the new PP plant end of this month. Although the export allocation might only become available in the later date, the overall supply condition is set to increase. Everyone is increasingly cautious now,” a Malaysian source commented.

In the meantime, Vietnamese buyers are placing bids for regular Saudi Arabia homo-PP yarn in the range $1060-1070/ton, unchanged from last December 2018, and currently waiting for supplier’s feedback. 

Polyethylene (PE)

Transaction for import LLDPE film in Vietnam shows a minor uptick, however, the purchased quantity is still small. Compared to HDPE and PP, customers seem to have a better appetite for regular brand LLDPE film given the lack of availability of these cargoes in the local ground. 

“There are too much of irregular USA cargoes but not enough of regular one. The need for replenishment is there, but buyers are very selective,” a supplier added. 

Local trader in Indonesia continue cutting HDPE film prices in a race to deplete cargoes and prop up demand.