NewsSSESSMENTS: Global Polypropylene Digest: Africa, Australia, Bangladesh, China, Europe, India, Indonesia, Malaysia, Middle East, Myanmar, Pakistan, Philippines, South America, Thailand, Turkey, Vietnam Week 2, January 10-14

Africa

• A Nigerian producer announced its new price list for polypropylene (PP) cargoes with a reduction of NGN20,000/ton ($48/ton) compared to the price list released on December 16, 2021
• Offers for PP Homo Raffia cargoes from a Chinese trader to Angola stood at $1,460/ton on LC at sight, CFR Angola Main Port basis, without any price comparison disclosed
• Import offers for PP Homo Raffia from South Korea to Nigeria dropped between $50-100/ton compared to last month’s level 

Australia

• PP Block Copolymer offers from Singapore fell by $20/ton compared to the offer level seen before the Christmas holiday
• Polypropylene (PP) demand remained on a bearish run as some market players were still on a long-year-end holiday
• Manpower issues amid the soaring Omicron cases in the country are predicted to overshadow the market improvement

Bangladesh

• On the monthly comparison, import offers for PP Homo Raffia cargoes from Thailand hiked by $50/ton
• Fresh offers for PP Homopolymers grades from the leading Indian petrochemical producer for February shipment climbed between $20-40/ton on the biweekly comparison
• March shipment PP Homo Injection offers from a Saudi producer increased between $20-30/ton compared to a fortnight ago

China

• Local offers for polypropylene (PP) cargoes across different grades inched down CNY100/ton ($16/ton) compared to the previous week’s level
• China’s Heilongjiang Haiguo Longyou Petrochemical runs its polypropylene (PP) plants with a production capacity of 200,000 tons/year and 350,000 tons/year at 70-80% since October 2021, due to feedstock shortage
• February-shipment polypropylene (PP) offers from a South Korean producer dropped between $10-40/ton on the monthly basis

Europe

• Fresh PP Homo Raffia offers on CIF Portugal/Poland basis from the leading Indian petrochemical producer fell by EUR40/ton ($45/ton) compared to December’s offer level
• Deals for Indian PP Homo Raffia cargoes to Portugal and Poland wrapped up at the initial offer level, at EUR1,360/ton ($1,542/ton) on LC at sight, CIF Main Port basis
• Polypropylene (PP) offers to Europe are expected to show limited changes as long as the prices in the Chinese market remain low

India

• On the weekly basis, offers for local PP Homopolymer grades via traders dropped by INR1,500/ton ($20/ton)
• Polypropylene (PP) demand remained sluggish as buyers preferred to undertake procurement on a hand-to-mouth basis amid the rumour about lockdown measures following the surging Omicron cases
• On January 11, the leading Indian petrochemical producer increased its export offers for PP Homo Raffia cargoes to Vietnam by $10/ton compared to the done deal level a day earlier

Indonesia

• The leading Saudi polyolefins producer adjusted down its price list for PP Block Copolymer and PP Random Copolymer by $20/ton, while the price list for other grades was stable, all compared to the previous week’s levels
• Import PP Homo Raffia offers from Vietnam climbed between $10-30/ton on a week-on-week comparison
• Compared to the price list released on January 2, 2022, the polypropylene (PP) price list from the leading Indonesian polyolefins producer generally increased between IDR210,000-430,000/ton ($15-30/ton)

Malaysia

• A Malaysian polyolefins producer lowered its PP Homo Raffia offers for January delivery by MYR500/ton ($119/ton) on the monthly comparison
• Polypropylene (PP) woven bag manufacturers in Malaysia claimed that demand was healthy as supported by robust demand for fertilizer packaging amid good demand for palm oil and improved demand for sugar packaging due to reduced export volume from Brazilian suppliers
• Market players foresee that polypropylene (PP) offers will rebound after the Lunar New Year holiday

Middle East

• A Saudi producer released its January delivery polypropylene (PP) price list with a reduction of SAR225/ton ($60/ton) compared to the price list released on December 1, 2021
• Polypropylene (PP) offers from Saudi to Iraq dropped between $40-50/ton compared to a month earlier
• On the monthly basis, local PP Homo Raffia offers in Saudi via traders remained stable

Myanmar

• PP Homo Injection and PP Homo Raffia offers from South Korea emerged at a firm level, at $1,320/ton on LC at sight, CIF Yangon Port, due to skyrocketing freight costs
• There were no fresh offers for polypropylene (PP) cargoes from the Thai producers to Myanmar; new offers may be out in mid-January
• Polypropylene (PP) demand started to pick up as buyers are more willing to secure the materials since they opined that the offers have bottomed out

Pakistan

• The number of fresh polypropylene (PP) offers from overseas suppliers was scarce
• Polypropylene (PP) demand in the domestic market remained on a downbeat as the trading activity was still limited
• Considering the obscure demand, offers for polypropylene (PP) still have a chance to drop in the upcoming week

Philippines

• The polypropylene (PP) price list from a Malaysian polyolefins producer largely declined by $20/ton compared to the price list announced in mid-December 2021
• On the weekly interval, the leading Philippines polyolefins producer maintained a stable offer level for local polypropylene (PP) cargoes
• Rumour has it that the Philippines’ Petron has started its polypropylene (PP) plant with an expanded capacity of 220,000 tons/year since January 7, 2022

South America

• Fresh PP Homo Raffia offers from China to South America surfaced at $1,500/ton on LC at sight, CFR South America Main Port basis, without any price comparison available
• The Brazilian buyers attempted to submit a bid for Chinese PP Homo Raffia cargoes at $1,510/ton on CFR Brazil basis, which was deemed too low as the Chinese trader’s cost is $1,550/ton on CFR Brazil basis
• A Brazilian producer decreased its local polypropylene (PP) offers across different grades by BRL500/ton ($90/ton) in comparison to last month’s level

Thailand

• Thailand’s IRPC Public Company Limited will conduct a maintenance shutdown at its polypropylene (PP) line No. 4 with a production capacity of 140,000 tons/year in mid-February for around two weeks, while the line No. 3 with a capacity of 285,000 tons/year will be under turnaround maintenance in mid-March 2022 for two weeks
• On the weekly comparison, local offers for polypropylene (PP) cargoes from a Thai producer increased by THB750/ton ($22/ton)
• A Thai trader adjusted up export offers for PP Homo Injection, PP Homo Raffia, and PP Random Copolymer to Vietnam by $20/ton from a week earlier

Turkey

• A South Korean producer initially increased offers for PP Block Copolymer to Turkey between $10-20/ton compared to the prior week’s level, yet deals were closed at last week’s level
• The leading Indian petrochemical producer maintained its offers for PP Homo Raffia cargoes to Turkey stable from last week, after increasing the offers by $40/ton in the previous week compared to the offer level recorded in December
• The muted Chinese market during the Lunar New Year holiday is forecasted to put pressure on Turkey’s polypropylene (PP) market

Vietnam

• On the biweekly comparison, import offers for PP Homo Raffia cargoes from two South Korean producers hiked between $20-40/ton
• The latest polypropylene (PP) offers from a Malaysian polyolefins producer emerged at $30-60/ton lower than last month’s level
• Local PP Homo Raffia offers via traders climbed by VND300,000/ton ($13/ton) compared to the previous week’s level

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