03/09/2010 (17:37)     Italiano  

 

Import PP, PE for Sep sold with increases in Asia

In Asia, September import deals for both PP and PE have been concluded with sizeable increases when compared with the August done deal levels, with several producers from the Middle East achieving price increases in excess of $100/ton on the month. Producers attributed their higher done deal levels for September to reduced availability resulting from a number of plant shutdowns in the region as well as stronger ethylene and propylene feedstock prices, while conceding that demand has not been as strong as they had hoped it would be for September.

Asian demand has been held in check by impending holidays in both China and Southeast Asia, with buyers generally reporting that they are unwilling to purchase beyond their immediate needs for the moment given the pervasive uncertainty regarding the direction of the global economy. Electricity rationing inside China has also contributed to lower overall demand in Asia while converters in the agricultural film industry state that demand has not risen as high as they had expected it would during the current high season for the product.

After announcing their September PE offers to China with increases of $65-160/ton from August, overseas producers report that they have managed to conclude some deals at or close to their initial offer levels, with many of these producers claiming that they have nearly sold out their September allocations.

One Middle Eastern producer stated that they concluded some deals for LLDPE film at prices $20-30/ton below their initial offer levels but $130/ton above their August done deal levels. Another Middle Eastern producer stated that they sold out their September allocations of HDPE and LLDPE film to China at prices which were up $70-110/ton. A Taiwanese producer, who announced their initial September offers for HDPE and LLDPE film with increases of $65-105/ton towards the end of August, reported that they concluded their September business shortly after announcing their new offers at prices $20/ton below their initial offer levels.

In Southeast Asia, a Middle Eastern producer reported concluding some September deals for LLDPE film to the region at prices $140/ton higher than their August done deal levels. Converters in the region also reported purchasing some HDPE and LLDPE film cargoes from another Middle Eastern producer at prices equal to or slightly below the producer’s initial offer levels, which had been announced at the end of August with increases of $90/ton for LLDPE film and $110/ton for HDPE film. In the LDPE film market, a trader reported selling out their September allocation for Malaysian origin at prices $30-60/ton higher than their initial sell ideas for September.

In the PP market, a Middle Eastern producer reported concluding deals for homo-PP injection and raffia with increases of $130/ton. Another Middle Eastern producer stated that they are standing firm on their September offers for homo-PP, which stand $120/ton above their August offer levels, even though they have received some bids from converters at prices $70-80/ton above their August offer levels.

In China, a major Middle Eastern producer reported concluding some September deals for homo-PP more than $100/ton above their August done deal levels. Meanwhile, a global producer reported that their September offers for Middle Eastern homo-PP still stand $30/ton higher than their August done deal levels even after they stepped back from their initial price hike targets of $70/ton in order to speed up the negotiation process.

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Related Links
> Mid Eastern September PP, PE offers revealed to China
> Asian PE offers announced to China for September