Asia Daily PP and PE Overview 15 January 2018
Asia Daily PP and PE Overview 15 January 2018
SOUTHEAST ASIA
- Import homo-PP continue to advance
- Falling ethylene costs concern PE buyers
Polypropylene (PP)
Import homo-PP to Southeast Asia continues to climb higher on the back of persistent tight supply and strong upstream costs. The fresh hike sends the average import prices to Vietnam to multi-years high levels this week. Prices below the $1200/ton threshold have technically disappeared and there are concerns that non-dutiable cargoes might hit the $1300/ton mark very soon. Both Thailand and South Korean homo-PP yarn are offered at $1280/ton CIF Vietnam, LC AS term. “Import market is firming up too quickly while local ground is trailing behind. We are unable to accept this offer at the moment,” a local trader informed.
Similar situation is observed in Indonesia market with Philippines homo-PP cargoes emerged at $20/ton higher week on week, at $1260/ton CIF Indonesia, LC AS term. A number of buyers here have stocked up comfortable inventories from local market in the previous session, which might hurdle overseas suppliers in achieving the latest hike target.
Polyethylene (PE)
The upstream ethylene market loses steam on Friday, 12 January 2017, falling $40/ton to $1380/ton CFR Northeast Asia amid active selling among Southeast Asian producers. Regional PE buyers are pretty concern regarding the latest development in the ethylene market, clogging the purchasing interest. However, industry experts are not expecting any deep fall in ethylene prices in the near term claiming that Southeast Asian makers have mostly sold out spot cargoes while other downstream products including SM and MEG are having relatively healthy margins.
Major Thailand producer lifted PE offers to Vietnam by $10/ton from last week, yet buyers are not showing strong interest at the moment. “These cargoes would only arrive in March, which is a little too risky at the current market levels since post-Lunar New Year outlook remain very much cloudy. We prefer to take cautious stance,” a buyer said.