Asia Daily PP and PE Overview – 29 January 2019

CHINA

·     Market sentiment dimmed further as more players take off for holidays

·     Import HDPE film continue attracting good attention

Polypropylene (PP)

Transactions in the PP market are getting thinner as more players are taking off for the Spring Festival. At the moment, only traders are active in searching for competitive cargoes. Sources said that coal-based PP producers might cut prices further in the near-term to ease inventory pressure.

“We sold 750 tons of locally produced PP yarn cargoes today. This would be the final transaction for the week as we would start taking off from tomorrow,” a trader reported.

Polyethylene (PE)

Interestingly, the number of deals for HDPE film remains much better than other grades, though prices started seeing hurdle to move higher. Deals for Asian HDPE film cargoes are reported at $1110-1160/ton CFR China, LC 0-60 days term while Middle Eastern materials reach $1075-1130/ton with the same term.

SOUTHEAST ASIA 

·     General sentiment calm as Lunar New Year holiday draws near 

·     Low Mi PP block copolymer faces difficulties in firming up 

Polypropylene (PP)

The regional PP market witness very limited movement with suppliers hold firm on prices while buyers have adopted a conservative stance to wait-and-see on the sideline. Buyers, who placed bid for Saudi homo-PP yarn cargoes at $1080/ton CIF Vietnam in the previous trading day, have not received any feedback. 

Meanwhile, attempts to lift prices for PP block copolymer (low Mi grade) seems yielding little result. Deals for South Korean cargoes remain in the range $1180-1220/ton CIF Indonesia, LC AS – unchanged from January.   

Polyethylene (PE)

The Southeast Asian PE market might need more time to catch up with the heating sentiment observed in the near-by China market over the past several trading days. Several trading houses have complained about the inability to move large quantity for Saudi HDPE and LLDPE film cargoes.

“We have not been able to conclude any deal for Saudi HDPE film at $1090/ton to Vietnam. Our principal supplier put more focus on China this month as Vietnam market is unable to accept higher price levels,” a distributor source added.