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MonthlySSESSMENTS: June SEA PP Prices

Author: SSESSMENTS

  • Local and import PP offers in the region captured on the same trend
  • Producers in some Southeast Asian countries were facing supply issues
  • Players foresee gloomy outlook for demand, particularly in Thailand

During June, SSESSMENTS.COM’s data showed that local and import offers within the Southeast Asia PP market were captured stable to firmer. In Malaysia, June delivery offers for PP Homopolymer and Copolymer grades from the local producer moved higher between MYR100-280/ton ($23-65/ton) compared to May. In the Philippines, local PP offers from the leading polyolefins producer on the week commencing June 8 increased between PHP1,000-2,000/ton ($20-40/ton) owing to firmer feedstock prices and limited allocation as the producer was able to divert a huge amount of cargoes to China in the previous month. Whereas in Thailand, offers for PP Homopolymer grades from the local producers were mostly captured on an uptrend during June, with a range of increase between THB500-2,000/ton ($16-64/ton) week over week. Most Thai producers claimed that the limited supply, especially for PP Homopolymers, was the major ground behind the upward price adjustments. In the first half of June, some Thai buyers were fine with the uptrend, but moving to the second half of the month, most buyers showed stiff resistance and the number of deals started to decrease taking into account the sufficient stocks on converters’ hands. 

In the import market, a Thai producer offered PP Homo Raffia cargoes to the Southeast Asia market above $900/ton-level on the back of limited supply coupled with firmer feedstock prices. On the week starting June 1, Middle Eastern PP Homo Raffia offers surfaced in Myanmar with increments of between $15-20/ton on a weekly comparison. A week after, a Thai trader stated that four-digit offers surfaced in the region because suppliers wanted to test buyers’ acceptance level amidst tight supply. Moreover, in late June, SSESSMENTS.COM noted that July shipment offers for PP Homo Film from one of the Middle Eastern producers skyrocketed by $130/ton compared to June. Detailed information for Indonesia and Vietnam market is available in WeeklySSESSMENTS of the respective countries.

As reported to SSESSMENTS.COM, demand for PP resins in the Southeast Asia market was considered sluggish throughout June, despite the slight improvement in each country. Players commented that the weak demand for resins was mainly linked with abundant stocks on converters’ end as well as slow sales for their finished products. In Thailand, weak demand was also caused by buyers’ resistance toward high prices. However, at the end of June, demand in Thailand had slightly improved as supported by orders from converters that need to clear backlogs for sales since March or before the Coronavirus-related lockdown was imposed in the country. Whereas in the Philippines, the overall demand was sluggish, although some buyers have placed orders after Metro Manila as the centre of business, was under General Community Quarantine (GCQ) as of June 1. In Malaysia, PP demand started to show improvement during the week commencing June 15 following the healthy demand for converters’ end-products from the domestic and export market such as Australia. Some converters in the region stated that the overall end-product sales in June were lots better than in May.

On the supply side, some producers in the region were reported having low availability of PP grades on their end. One of them was a Thai PP producer that has limited allocation stemming from maintenance shutdown at the company’s plants, while another PP producer in Thailand had backlogs to clear. On the plant news, Thailand IRPC’s 225,000 tons/year PP line No. 3 was shut for maintenance on June 12 to June 26. Upon the completion of maintenance at PP line No. 3, the producer also underwent a maintenance shutdown at its 160,000 tons/year PP line No. 4 starting on June 29 and expected to be back on-stream on July 11. 

Looking into July, the majority of Southeast Asian market players contacted by SSESSMENTS.COM believe that local PP prices will remain firm despite the unimproved demand in the region. Citing that limited availability of PP cargoes will continue to lend a hand. In terms of demand, players in Thailand opined that demand is going to be very slow as the market is still severely affected by Coronavirus outbreak; demand for both PP resins and end-products are predicted to drop around 50% from the current demand in July.

Range of local PP offers between June 1 to June 5 on FD basis, excluding VAT (except PHP term including 12% VAT, all equivalent in USD excluding VAT)

OriginProductTransaction TypeCurrencyOffers/tonEquivalent in USD/tonPayment TermDelivery Location
MalaysiaPP Homo FilmOffer ReceivedMYR4,230-4,290987-1,00130 Days Credit TermMalaysia
ThailandPP Homo FilmOffer ReceivedTHB32,000-33,0001,034-1,066Cash In AdvanceThailand
ThailandPP Homo FilmOffer GivenTHB34,0001,099Cash In AdvanceThailand
ThailandPP Homo FilmSoldTHB29,500953Cash In AdvanceThailand
PhilippinesPP Homo InjectionOffer ReceivedPHP60,0001,074Cash In AdvancePhilippines
ThailandPP Homo InjectionOffer ReceivedTHB32,000-32,5001,034-1,050Cash In AdvanceThailand
ThailandPP Homo InjectionOffer GivenTHB33,0001,066Cash In AdvanceThailand
ThailandPP Homo InjectionSoldTHB29,000937Cash In AdvanceThailand
MalaysiaPP Homo RaffiaPrice ListMYR4,080-4,130952-96330 Days Credit TermMalaysia
PhilippinesPP Homo RaffiaOffer ReceivedPHP60,0001,074Cash In AdvancePhilippines
ThailandPP Homo RaffiaOffer ReceivedTHB31,500-32,0001,018-1,034Cash In AdvanceThailand
ThailandPP Homo RaffiaOffer GivenTHB33,0001,066Cash In AdvanceThailand
ThailandPP Homo RaffiaSoldTHB29,000937Cash In AdvanceThailand

Range of import PP offers between June 1 to June 5 on LC at sight, CIF Main Port basis

OriginProductTransaction TypeOffers (USD/ton)Delivery Country
Middle EastPP Block CopolymerOffer Received950Myanmar
Indian SubcontinentPP Homo FilmOffer Received890Thailand
Middle EastPP Homo RaffiaOffer Received865-880Myanmar
Southeast AsiaPP Homo RaffiaSell Idea900Southeast Asia

Range of local PP offers between June 8 to June 12 on FD basis, excluding VAT (except PHP term including 12% VAT, all equivalent in USD excluding VAT)

OriginProductTransaction TypeCurrencyOffers/tonEquivalent in USD/tonPayment TermDelivery Location
MalaysiaPP Block CopolymerPrice ListMYR4,160-4,230970-98730 Days Credit TermMalaysia
MalaysiaPP Homo FilmPrice ListMYR4,23098730 Days Credit TermMalaysia
PhilippinesPP Homo FilmPurchasedUSD1,000-Cash In AdvancePhilippines
ThailandPP Homo FilmOffer ReceivedTHB34,0001,099Cash In AdvanceThailand
ThailandPP Homo FilmOffer GivenTHB35,0001,131Cash In AdvanceThailand
MalaysiaPP Homo InjectionPrice ListMYR4,03094030 Days Credit TermMalaysia
PhilippinesPP Homo InjectionOffer ReceivedPHP61,0001,091Cash In AdvancePhilippines
ThailandPP Homo InjectionOffer ReceivedTHB32,000-33,0001,034-1,066Cash In AdvanceThailand
ThailandPP Homo InjectionOffer GivenTHB34,0001,099Cash In AdvanceThailand
MalaysiaPP Homo RaffiaPrice ListMYR4,080-4,130952-96330 Days Credit TermMalaysia
PhilippinesPP Homo RaffiaOffer ReceivedPHP60,000-62,0001,074-1,10960 Days Credit TermPhilippines
PhilippinesPP Homo RaffiaOffer ReceivedPHP61,0001,091Cash In AdvancePhilippines
PhilippinesPP Homo RaffiaPurchasedUSD950-Cash In AdvancePhilippines
ThailandPP Homo RaffiaOffer ReceivedTHB32,500-33,0001,050-1,066Cash In AdvanceThailand
ThailandPP Homo RaffiaOffer GivenTHB34,0001,099Cash In AdvanceThailand

Range of local PP offers between June 15 to June 19 on FD basis, excluding VAT (except PHP term including 12% VAT, all equivalent in USD excluding VAT)

OriginProductTransaction TypeCurrencyOffers/tonEquivalent in USD/tonPayment TermDelivery Country
MalaysiaPP Block CopolymerPrice ListMYR4,160-4,320970-1,00830 Days Credit TermMalaysia
ThailandPP Homo FilmOffer GivenTHB35,500-36,0001,147-1,163Cash In AdvanceThailand
ThailandPP Homo FilmOffer ReceivedTHB34,500-35,0001,115-1,131Cash In AdvanceThailand
MalaysiaPP Homo InjectionOffer GivenMYR4,03094030 Days Credit TermMalaysia
ThailandPP Homo InjectionOffer GivenTHB30,500985Cash In AdvanceThailand
ThailandPP Homo InjectionOffer ReceivedTHB33,5001,082Cash In AdvanceThailand
ThailandPP Homo InjectionSoldTHB30,500985Cash In AdvanceThailand
MalaysiaPP Homo RaffiaOffer GivenMYR4,080-4,130952-96330 Days Credit TermMalaysia
MalaysiaPP Homo RaffiaSoldMYR4,08095230 Days Credit TermMalaysia
PhilippinesPP Homo RaffiaOffer ReceivedPHP60,000-62,0001,074-1,10960 Days Credit TermPhilippines
ThailandPP Homo RaffiaOffer GivenTHB34,5001,115Cash In AdvanceThailand
ThailandPP Homo RaffiaOffer ReceivedTHB33,5001,082Cash In AdvanceThailand
ThailandPP Homo RaffiaOffer ReceivedTHB33,5001,08230 Days Credit TermThailand
ThailandPP Homo RaffiaSoldTHB30,500985Cash In AdvanceThailand

Range of import PP offers between June 15 to June 19 on LC at sight, CIF Main Port basis

OriginProductTransaction TypeOffers (USD/ton)Delivery Country
MalaysiaPP Block CopolymerSold980-990Southeast Asia
MalaysiaPP Homo RaffiaSold920Southeast Asia
VietnamPP Homo RaffiaSold960Philippines

Local PP offers between June 22 to June 26 on FD basis, excluding VAT (PHP term including 12% VAT, all equivalent in USD excluding VAT)

OriginProductTransaction TypeCurrencyOffers/tonEquivalent in USD/tonPayment TermDelivery Country
MalaysiaPP Block CopolymerPrice ListMYR4,160-4,320970-1,00830 Days Credit TermMalaysia
PhilippinesPP Homo FilmOffer ReceivedPHP62,000-63,0001,109-1,127Cash In AdvancePhilippines
ThailandPP Homo FilmOffer GivenTHB37,0001,196Cash In AdvanceThailand
ThailandPP Homo FilmOffer ReceivedTHB36,0001,163Cash In AdvanceThailand
ThailandPP Homo InjectionOffer GivenTHB35,000-36,0001,131-1,163Cash In AdvanceThailand
ThailandPP Homo InjectionOffer ReceivedTHB35,000-35,5001,131-1,147Cash In AdvanceThailand
MalaysiaPP Homo RaffiaPurchasedMYR4,3001,003Cash In AdvanceMalaysia
PhilippinesPP Homo RaffiaOffer ReceivedPHP61,0001,091Cash In AdvancePhilippines
ThailandPP Homo RaffiaOffer GivenTHB35,000-36,0001,131-1,163Cash In AdvanceThailand
ThailandPP Homo RaffiaOffer ReceivedTHB35,000-35,5001,131-1,147Cash In AdvanceThailand

Range of import PP offers between June 22 to June 26 on LC at sight, CIF Main Port basis

OriginProductTransaction TypeOffers (USD/ton)Delivery Country
Southeast AsiaPP Block CopolymerPrice List1,000-1,060Malaysia
Middle EastPP Homo FilmOffer Received990Philippines
Southeast AsiaPP Homo FilmOffer Received1,020Philippines
Southeast AsiaPP Homo InjectionPrice List960Malaysia
Southeast AsiaPP Homo RaffiaSold*980Philippines
Description: *Offers for August shipment

Local PP offers between June 29 to June 30 on FD basis, excluding VAT (PHP term including 12% VAT, all equivalent in USD excluding VAT)

OriginProductTransaction TypeCurrencyOffers/tonEquivalent in USD/tonPayment TermDelivery Country
MalaysiaPP Block CopolymerOffer GivenMYR4,4401,03630 Days Credit TermMalaysia
MalaysiaPP Block CopolymerPrice ListMYR4,440-4,5101,03630 Days Credit TermMalaysia
MalaysiaPP Homo FilmPrice ListMYR4,5501,06130 Days Credit TermMalaysia
MalaysiaPP Homo InjectionOffer GivenMYR4,3501,01530 Days Credit TermMalaysia
MalaysiaPP Homo InjectionPrice ListMYR4,3501,01530 Days Credit TermMalaysia
MalaysiaPP Homo RaffiaOffer GivenMYR4,400-4,4501,027-1,03830 Days Credit TermMalaysia
MalaysiaPP Homo RaffiaPrice ListMYR4,400-4,4501,027-1,03830 Days Credit TermMalaysia
PhilippinesPP Homo RaffiaOffer ReceivedPHP64,0001,145Cash In AdvancePhilippines
ThailandPP Homo RaffiaOffer GivenTHB35,000-36,0001,131-1,163Cash In AdvanceThailand
MalaysiaPP Random Copolymer ExtrusionPrice ListMYR4,820-4,8801,142-1,13930 Days Credit TermMalaysia

Range of import PP offers between June 29 to June 30 on LC at sight, CIF Main Port basis

OriginProductTransaction TypeOffers (USD/ton)Delivery Country
Middle EastPP Homo InjectionOffer Received1,010Southeast Asia

Tags: Asia Pacific,English,Monthly,PP,SEA

Published on June 30, 2020 5:30 PM (GMT+8)
Last Updated on June 30, 2020 5:33 PM (GMT+8)