Tepid demand weighs on local PP prices in Indonesia, Vietnam; tightness supports PE

Tepid demand weighs on local PP prices in Indonesia, Vietnam; tightness supports PE

In Indonesia and Vietnam, import PP and PE prices have changed course since around two weeks ago and they have been witnessing slight drops in the face of unsupportive demand. Within the region’s local markets, PP prices have also yielded to the downward pressure from poor demand while PE seems to be stronger than PP given its ongoing supply concerns.

Indonesian producer cuts local PP offers; slightly raises PE

Traders in Indonesia reported that a local producer reduced PP offers for most grades by IDR220,000-290,000/ton ($15-20/ton) from last week while raising its PE offers by IDR60,000/ton ($4/ton) at the start of the week.

“The local producer started to reduce PP offers around three weeks ago following several weeks of continual price hikes. Buyers have been resisting higher offers as they are struggling to pass on successive hikes to downstream customers. Import PP prices have decreased slightly, which also put pressure on the local market,” a trader said.

As for PE, players noted that low supply levels continued to support the sentiment and helped sellers maintain a firm stand on their offers. “Local PE prices have increased this week, albeit slightly. PE sentiment is stronger than PP, yet the hike amounts can only be limited as second wave fears continue to dent demand,” a seller commented.



Low supplies prop up PE prices in Vietnam; PP remains weak

Players in Vietnam reported that local PE prices were largely stable after losing some ground in the previous weeks. “PE supply is still limited, which has prevented local prices from seeing further declines this week,” explained a seller.

On the other hand, PP prices have remained under pressure from weak domestic demand, players agreed.

A converter said, “Local sellers have reduced offers due to sluggish buying interest. The situation has deteriorated since the second wave of COVID-19 infections started in the country. Buyers are either staying on the sidelines or limiting their purchases. PP is likely to remain weak in the near term.”

 

Source : Chemorbis

 

 

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