Asia Daily PP and PE Overview – 18 April 2019

CHINA

·      Falling futures market continues adding more caution to the market 

·      Limited movement in the import ground 

Polypropylene (PP)

Given the comfortable inventories levels in the domestic ground, Chinese buyers have been very cautious about making replenishment over the past weeks. With the recent weakening futures market, buyers become more reluctant to make large replenishment.

“We managed to conclude 300 tons of Vietnamese homo-PP injection at $1170/ton FOB Vietnam to a Chinese buyer. Meanwhile, most bids for yarn grades are standing at around $1140/ton levels. The buying interest is very subdued,” a Vietnamese trader commented.

Polyethylene (PE)

As expected, the local market continues to soften as a result of weaker demand from the agricultural film sector. Chinese traders have been hoping for an uptick in demand in April, however, the market does not work in their favour.

Data showed that except for LDPE film, both LLDPE and HDPE film prices in the domestic ground are softer compared to the beginning of the month. This is expected to keep the firming import market in check.   

SOUTHEAST ASIA 

·      Limited market movement amid on-going holiday 

·      Competitive USA LLDPE film cargoes steal the limelight

Polypropylene (PP)

Trading activities in the region remain mute as players in Philippines and Indonesia are still away from their desks. Vietnamese homo-PP yarn is available in the range $1175-1190/ton CIF Southeast Asia term, though a supplier has confirmed the sluggish demand condition and willing to give up to $15/ton discount on deals. 

Most other suppliers have not opened the fresh price list. However, the supply tightness is expected to persist in the near to medium term. 

Polyethylene (PE)

Several deals for USA LLDPE film are observed in Vietnam at $1000/ton for C4 based and at $1005/ton for C6 based, all based on CIF, LC 60 days. Sources commented that these are the most competitive cargoes available in the market at the moment.