Arbitrage window opens to Southeast Asian PP market from China
To track weekly developments in Southeast Asia’s PP market, please see SEA/India Weekly PP Analysis (For members only)
Supply constraints on the back of the maintenance season as well as the stronger upstream costs pushed import homo-PP prices in Southeast Asia to seven-month highs. According to players in the region, PP prices have jumped more than $100/ton over this past month.
To track weekly developments in China’s PP market, please see China Weekly PP Analysis (For members only)
Meanwhile, the increase in China’s PP market has been more modest. This situation caused around a $110/ton gap between the average import homo-PP prices given to China and prices given to Southeast Asia, as can be seen in the below ChemOrbis Price Wizard graph. This gap can be deemed as the highest premium difference over a year’s period.
Source: ChemOrbis Price Wizard
Apart from the lower import PP prices in China, last week, Vietnamese players also reported a Chinese homo-PP price standing close to the low end of the overall import range in that country. Considering these developments, Chinese sellers might be looking to export or re-export their cargoes to the Southeast Asian PP market.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Major LDPE markets touch multi-year highs on growing tightness
- A prospect for Q4 through uncharted waters of 2020 amid pandemic
- China's import PP markets maintain uptrend under shadow of oil-driven losses in Dalian futures
- Weaker domestic demand prompts Vietnam to export polymers
- European PP market ceases upward trend in September
- Force majeure declarations rock the boat in Turkish PVC market
- China’s PE uptrend fueled by US force majeures; LDPE soars to more than 1-year high
- Stats: China’s cumulative PP imports in Jan-July 2020 reach record-high
- Sept PP, PE trend begins to take shape in Saudi Arabia
- Sept expectations voiced in Europe; ABS draws rosier picture than PS