PP, PE cargoes from US, Brazil offer competitive edge in Asia
In China, PP and PE markets have recently turned to a stable to soft note as future markets took their support away. Although supplies from the Middle East, particularly from Qatar, are limited to China, this does not create a major concern due to lack of demand and these deep-sea origins are filling the gap.
Brazilian LDPE was offered at $1100/ton CIF, cash, standing on the low end of the overall range at $1100-1200/ton.
US LLDPE was offered at $1075-1085/ton CIF, cash equivalent while Brazilian LLDPE was at $1100-1120/ton CIF, cash. On the other hand, Middle Eastern offers were available as high as $1180/ton with the same terms.
HDPE film offers from Brazil were also on the low end of the overall range at $1095-1125/ton while Middle Eastern and Southeast Asian origins were available in a wide range of $1120-1190/ton.
US offers also exerted a clear pressure on China’s import PP market this week as raffia offers as low as $960/ton emerged for this origin while mainstream origins from the Middle East and India were above $1020/ton, CIF China, cash.
In Southeast Asia, the trend remains firm particularly in local markets. In the import market, US PP offers also emerged at competitive prices. A trader reported that he sold US PP with a $20/ton decrease from his initial offer to Indonesia at $1030/ton CIF and this formed the low end of the overall range.
A source at a Middle Eastern producer commented, “Lately there’s been an influx of Latin American cargoes because the economy in that region is not good and they are pushing cargoes to Asia.” Brazilian origin stood at the low end of the LLDPE film range for the last two weeks at $1160/ton CIF SEA, cash.
Export prices from the US are also reported to be down particularly for HDPE and US producers are reportedly clearing their PP inventories, according to the players in that region.
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