Firming in Southeast Asia’s PP, PE markets stronger than China after holidays
In China, modest increases were reported both in the PP and PE markets. Some drops were even visible in local LDPE and some PP products this week. “Sellers had to lower their LDPE film offers which were already found to be too high before the Chinese New Year holiday. Demand for LDPE is the weakest among PE products,” commented a distributor. This week’s lower futures market also hurt the firm sentiment in the post-holiday period to some extent.
Sellers in China generally maintain their firm stance for February and ahead for both PP and PE; however, new capacities as well as the expected arrival of deep-sea cargoes are causing jitters about the firm expectations. The concerns over the sustainability of the firm trend seem more visible in PE than in PP among players.
Meanwhile, the sentiment is seen firmer in Southeast Asia as regional shutdowns that take place particularly in February and March are dominating the outlook. Reduced supplies from major overseas markets particularly from the Middle East are also giving a stronger hand to sellers.
A Thai producer raised its PP offers by $20/ton and PE offers by $30/ton to Indonesia while global traders reported concluding deals for Saudi PP and PE with increases this week across the region. “Middle Eastern PE offers increased significantly when compared to pre-holiday levels as supplies are problematic from the region as well as from Iran,” a global seller noted.
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