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Southeast Asia PP Price Is First Over LLDPE In Three Years

PP spot prices in Southeast Asia have exceeded LLDPE for the first time in three years.

According to the assessment, in January 12th, Southeast Asia PP flat price ratio LLDPE film price is about $15 / ton, 1180 U.S. dollars / ton (CFR). And the spot price of LLDPE film is $1165 / ton.

According to the previous two years of data, generally speaking, LLDPE films than the average price of PP flat high price to 100 U.S. dollars / ton

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At the beginning of November 2017, due to the pressure of supply, several Middle East and Saudi companies lowered their quotations for LLDPE films, and some manufacturers reduced their prices by as much as 40 USD / tonne. The weak demand for downstream finished products also affected the enthusiasm of buyers to buy LLDPE film.

Southeast Asian distributors in order to meet the end of the year and save a lot of polymer resin, so less inclined to buy a new batch of products.

Meanwhile, the spot price of PP flat yarns is also suppressed due to the sluggish trading conditions in the finished goods market.

However, due to the tight supply in the Middle East, the price of PP has declined more slowly. The price drop is mainly affected by the supply and demand.

Since then, the strong price of crude oil and raw materials since late November 2017 has also led to an increase in the price of polyolefins. Starting from November 24, 2017, PP was firmly affected by the tight supply and strong Chinese market, with a price increase of US $ 40 / tonne.

In contrast, LLDPE films are up slightly due to adequate supply and weaker demand, with only a small increase of US $ 20 / tonne since Nov. 24.


In contrast, LLDPE films are up slightly due to adequate supply and weaker demand, with only a small increase of US $ 20 / tonne since Nov. 24.

Southeast Asia LLDPE film is also less than the rate of increase of HDPE film, since November 24, due to tight supply, HDPE prices rose 80 US dollars / ton, reaching 1,300 US dollars / ton (January 12, 2018 data).

Due to strong upstream raw materials and supply constraints and other factors provide price support for HDPE, some buyers also expect further supply and demand to find goods to meet their production needs, the overall market bullish situation.

Due to the different market fundamentals, the price of PP resin has surpassed the LLDPE film in recent weeks.

Southeast Asia PP Yansi strong support by the Chinese market, due to the local domestic spot prices and futures prices and further led to the rise in import prices.

Due to the relative shortage of imports and the lack of deep-sea supplies, the Middle East imports of PP are even more expensive.

In addition, in September 2017, Japan's JPP suddenly closed its 300,000 ton / year plant and its demand in Japan also started to increase.

In general, Japan is not the main importer of PP resin, and Japan is fully self-sufficient. However, the JPP plant is expected to close to around February. Some Japanese buyers have no choice but to hope for the import market to ensure that they are in stock.

As a result, manufacturers have chosen to carry the goods to a more profitable Japanese market, which also makes the supply of the spot market in Asia tight.

On the other hand, although the main Chinese market and other Asian regions are in a weak market demand, buyers refuse high prices, but LLDPE film manufacturers insist on raising their quotations under the condition of a sharp rise in prices.

The instability of China's LLDPE futures price increases the uncertainty of the market, which also inhibits buyers' willingness to purchase long term imports.

Some market people expect the overall demand for the plastic market to improve with the implementation of the ban.

According to official statistics, China's PE imports rose by 9.27% in November to 1 million 70 thousand tons.

However, other industry insiders are also worried because of the increase in exports in India and the United States, resulting in increased demand.

In the long run, the price of PE in Asia may be under downward pressure, because buyers have more choices when they face more sources of goods from the US.

The supply of PP resin is expected to grow slowly as several coal enterprises in China have been postponed.

According to Chinese customs statistics, the import volume of PP in China was about 430 thousand tons in November 2017, up 22.8% from the same period.