Asian Polypropylene (PP) prices continued to remain soft this week due to steadily weak demand from China and high inventory level in the sellers. No heard firm offers and bids in the market.  Buyers were on sidelined position and not keen to place any orders, as the prices were expected to go down further. The demand from China was steadily weak due to reduced PP consumption in local China market and economic slowed down in US continued to reduce China’s finish goods export to the country. Upcoming National Day holidays in China due to September 29-October 5; and “Lebaran” holidays in parts of Southeast Asia early October also support the weak sentiment. In Indonesia, the market was very quiet, with offer price for PP Yarn/Injection was at US$1500-1550/MT CFR Indonesia, no buying idea emerged in the market, but it should be at below US$1500/MT CFR Indonesia, as local PP producers decreased the prices by about US$140/MT early this week.  The Film and Impact Copolymer grades were at US$80-90/MT above Yarn/Injection prices. With rebound in crude oil prices, many market players expected the PP prices will show a positive sign after National Day holiday in China and “Lebaran” holiday in SEA in October, as currently converters were running with low materials stock and should need to replenish it.
 
Asian Polyethylene (PE) CFR SEA  prices fell to US$1470-1480/MT for  HDPE Injection, to US$1730-1740/MT for LDPE, and to US$1560-1570/MT for LLDPE due to weakness of crude oil price and demand, and high inventories in China.  Buyers didn’t want to buy the materials as they expected the prices to go down further, so they decided to take wait-and-see stance.

Propylene and Ethylene prices also down, as low demand in upstream and downstream market continued to dampen buyer’s sentiment.  Buyers were reluctant to buy the materials and decided to take wait-and-see position. The market could be better after long “Lebaran” holidays in SEA and National Day holidays in China in October.