SE Asian PP, PE markets yet to respond China’s recent firming
As was already noted in ChemOrbis Plastics News Local PP, PE markets turn up in China , PP and PE prices in the country witnessed increases this week after following a stable to softer trend following the National Day holiday, except for HDPE. Chinese players cited higher futures markets, the maintenance shutdowns as well as some replenishment activities as the reason of recent increases.
A trader in China commented, “Although it is hard to make a prediction on China’s outlook, we think prices will move up in the days ahead. The inventory levels of local producers are standing at normal levels while traders also don’t have much stock as they cleared their inventories during September. As for import supplies, Iranian cargoes remain limited, particularly for HDPE while supplies from the Middle East are not also stable. We don’t think there are enough factors to pull the Chinese market down. However, we are worried about Southeast Asia as sentiment remains weak. We think the upturn in China will push Middle Eastern suppliers to keep their offers firm to Southeast Asia as well.”
Contrary to China, players in several Southeast Asian markets mostly reported that the sentiment across the regional PP and PE markets remains weak in the wake of thin demand.
In the Philippines, an agent of a local producer reported that their supplier kept its local PP and PE offers stable. “The Philippines market remains quiet despite the fact that futures in China increased visibly and the sentiment seems strong. We are yet to feel the impact of this on our market,” he added.
In Vietnam, local PP and PE prices are offering a more competitive edge than imports. A converter noted, “We think the current price levels in the import market are still too high to accept. For now, we prefer to source our needs from the local market. We are planning to wait until prices move lower in order to make purchases.”
In Indonesia, a trader in Jakarta said, “The PP, PE sentiment remains weak as buyers are sidelined in anticipation of seeing lower levels. We think the upward momentum in the nearby Chinese market is yet to influence buyers’ attitude so far in Indonesia.”
Meanwhile, a local producer in Indonesia has applied decreases both on its local PP and PE offers in early this week for the first time since early July.
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