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Two days after the long weekend New Year Holiday, sentiment across Southeast Asia remains calm with very limited trading activities. Most overseas suppliers have yet to open fresh offers while other are keeping prices stable to firmer with strong support from the energy and upstream markets.

“We have only received LLDPE film offers for Indian and Saudi Arabia origins with $20/ton hike compared to the pre-holiday period. Domestic ground is quiet and our regular customers have yet to return for replenishment. We are watching out for further development,” a Vietnamese trader said.

Similar situation is observed in Indonesia. Major local producers here have introduced fresh hike on PP and PE cargoes right after returned from the holiday, yet there is very limited respond from the market. “We only resume working towards the end of the week. The recent hike in local offers, especially on homo-PP yarn might not attract much attention as distribution market has been giving small discount since previous week,” a market source informed.

Regional players are cautiously waiting for fresh offers from overseas suppliers, though expectation for firmer prices seems to be strong. Various supporting factors have been cited, including firming upstream propylene and ethylene costs, resilient energy complex, persistent limited supply and bright outlook in the nearby China market.