First Week OF 2021
Polyethylene Pipe Grade (Asia-Pacific)
Middle East offers were largely heard at rollovers for January cargoes of black and natural 100, while southeast Asian offers were stable to firm, selling into February loading cargo, buoyed by firmer upstream crude prices.
On the demand front, Chinese buying interest was weak amid a seasonal lull. Buyers were mostly cautious given slower downstream orders and ahead of the Lunar New Year holiday. In southeast Asia, buying interest was mixed. There were pockets of stronger-than-normal buying appetite from some buyers for southeast Asian cargoes, but demand for Middle East cargoes was stable to soft.
In the meantime, ocean freight costs and vessel and container availability issues remained a challenge for Asian sellers. Some buyers faced delays in receiving their orders from varying origins, including from the Middle East.
PE Pipe Natural Colour HDPE 100 CFR China
Propylene Daily (Asia-Pacific)
There was a deal heard at $995/tonne CFR NE Asia done in the previous day. There were also two deals heard at $950/tonne CFR CMP but it was unclear if they were done in the day.
Most offers or selling indications heard were in the high-$900s to $1,000/tonne CFR NE Asia level.
Buying indications remained low at $950-960/tonne CFR NE Asia with some slightly higher.
In the FOB NE Asia spot market, there was a deal heard at $975/tonne FOB NE Asia but it was done earlier in the week.
One sell tender was on-going in the day but no results were heard.
The Shandong domestic prices were assessed at yuan (CNY) 7,200-7,250/tonne ex-tank.
In the southeast Asian spot market, there was a tender in the region involving some 12,000 tonnes of cargoes loading in various dates in H2 January. The tender will conclude around 11 January, sources said.
Most sources polled said the price spread between the average price of CFR NE Asia and CFR SE Asia was around $70/tonne in the day.
Covering Editor: Joson Ng
Polyethylene (PE) supply has tightened on good demand and limited feedstock.
Buyers acknowledge that a three-digit increase is inevitable for freely negotiated business, and some are faced with stronger hikes, depending on the grade.
Imports remain low in volume, and local production is subject to reduction in some cases.
Upstream ethylene has become very tight, on good demand and several production issues.
Several producers said they were close to closing order books, as planned volumes have been sold.
Ethylene Daily (Asia-Pacific)
Northeast Asian prices were flat as production issues were offset by low spot demand in China.
A producer purchased a 3,500 tonne parcel for end-January to early February arrival at $1,090/tonne CFR NE Asia.
In China, buying interest was dampened by weak downstream margins and a sharp fall in the domestic prices in Shandong.
Buying indications were capped at $1,000-1,030/tonne CFR NE Asia for end-January to first-half February arrival cargoes.
In southeast Asia, a 3,500 tonne parcel was booked by an end-user at around ICIS CFR SE Asia February average +$40/tonne.
The outcome of PTT Global Chemical's (PTTGC) tender to buy a 3,500-5,000 tonne parcel for 15-19 January delivery was uncertain. Market sources said the producer may have bought the cargo on a formula basis.
There were no fixed-price basis discussions located.