monthlyssessments-june-sea-pp-prices

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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)

Origin	Product	Transaction Type	Currency	Offers/ton	Equivalent in USD/ton	Payment Term	Delivery Location
Malaysia	PP Homo Film	Offer Received	MYR	4,230-4,290	987-1,001	30 Days Credit Term	Malaysia
Thailand	PP Homo Film	Offer Received	THB	32,000-33,000	1,034-1,066	Cash In Advance	Thailand
Thailand	PP Homo Film	Offer Given	THB	34,000	1,099	Cash In Advance	Thailand
Thailand	PP Homo Film	Sold	THB	29,500	953	Cash In Advance	Thailand
Philippines	PP Homo Injection	Offer Received	PHP	60,000	1,074	Cash In Advance	Philippines
Thailand	PP Homo Injection	Offer Received	THB	32,000-32,500	1,034-1,050	Cash In Advance	Thailand
Thailand	PP Homo Injection	Offer Given	THB	33,000	1,066	Cash In Advance	Thailand
Thailand	PP Homo Injection	Sold	THB	29,000	937	Cash In Advance	Thailand
Malaysia	PP Homo Raffia	Price List	MYR	4,080-4,130	952-963	30 Days Credit Term	Malaysia
Philippines	PP Homo Raffia	Offer Received	PHP	60,000	1,074	Cash In Advance	Philippines
Thailand	PP Homo Raffia	Offer Received	THB	31,500-32,000	1,018-1,034	Cash In Advance	Thailand
Thailand	PP Homo Raffia	Offer Given	THB	33,000	1,066	Cash In Advance	Thailand
Thailand	PP Homo Raffia	Sold	THB	29,000	937	Cash In Advance	Thailand

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

Origin	Product	Transaction Type	Offers (USD/ton)	Delivery Country
Middle East	PP Block Copolymer	Offer Received	950	Myanmar
Indian Subcontinent	PP Homo Film	Offer Received	890	Thailand
Middle East	PP Homo Raffia	Offer Received	865-880	Myanmar
Southeast Asia	PP Homo Raffia	Sell Idea	900	Southeast 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)

Origin	Product	Transaction Type	Currency	Offers/ton	Equivalent in USD/ton	Payment Term	Delivery Location
Malaysia	PP Block Copolymer	Price List	MYR	4,160-4,230	970-987	30 Days Credit Term	Malaysia
Malaysia	PP Homo Film	Price List	MYR	4,230	987	30 Days Credit Term	Malaysia
Philippines	PP Homo Film	Purchased	USD	1,000	-	Cash In Advance	Philippines
Thailand	PP Homo Film	Offer Received	THB	34,000	1,099	Cash In Advance	Thailand
Thailand	PP Homo Film	Offer Given	THB	35,000	1,131	Cash In Advance	Thailand
Malaysia	PP Homo Injection	Price List	MYR	4,030	940	30 Days Credit Term	Malaysia
Philippines	PP Homo Injection	Offer Received	PHP	61,000	1,091	Cash In Advance	Philippines
Thailand	PP Homo Injection	Offer Received	THB	32,000-33,000	1,034-1,066	Cash In Advance	Thailand
Thailand	PP Homo Injection	Offer Given	THB	34,000	1,099	Cash In Advance	Thailand
Malaysia	PP Homo Raffia	Price List	MYR	4,080-4,130	952-963	30 Days Credit Term	Malaysia
Philippines	PP Homo Raffia	Offer Received	PHP	60,000-62,000	1,074-1,109	60 Days Credit Term	Philippines
Philippines	PP Homo Raffia	Offer Received	PHP	61,000	1,091	Cash In Advance	Philippines
Philippines	PP Homo Raffia	Purchased	USD	950	-	Cash In Advance	Philippines
Thailand	PP Homo Raffia	Offer Received	THB	32,500-33,000	1,050-1,066	Cash In Advance	Thailand
Thailand	PP Homo Raffia	Offer Given	THB	34,000	1,099	Cash In Advance	Thailand

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)

Origin	Product	Transaction Type	Currency	Offers/ton	Equivalent in USD/ton	Payment Term	Delivery Country
Malaysia	PP Block Copolymer	Price List	MYR	4,160-4,320	970-1,008	30 Days Credit Term	Malaysia
Thailand	PP Homo Film	Offer Given	THB	35,500-36,000	1,147-1,163	Cash In Advance	Thailand
Thailand	PP Homo Film	Offer Received	THB	34,500-35,000	1,115-1,131	Cash In Advance	Thailand
Malaysia	PP Homo Injection	Offer Given	MYR	4,030	940	30 Days Credit Term	Malaysia
Thailand	PP Homo Injection	Offer Given	THB	30,500	985	Cash In Advance	Thailand
Thailand	PP Homo Injection	Offer Received	THB	33,500	1,082	Cash In Advance	Thailand
Thailand	PP Homo Injection	Sold	THB	30,500	985	Cash In Advance	Thailand
Malaysia	PP Homo Raffia	Offer Given	MYR	4,080-4,130	952-963	30 Days Credit Term	Malaysia
Malaysia	PP Homo Raffia	Sold	MYR	4,080	952	30 Days Credit Term	Malaysia
Philippines	PP Homo Raffia	Offer Received	PHP	60,000-62,000	1,074-1,109	60 Days Credit Term	Philippines
Thailand	PP Homo Raffia	Offer Given	THB	34,500	1,115	Cash In Advance	Thailand
Thailand	PP Homo Raffia	Offer Received	THB	33,500	1,082	Cash In Advance	Thailand
Thailand	PP Homo Raffia	Offer Received	THB	33,500	1,082	30 Days Credit Term	Thailand
Thailand	PP Homo Raffia	Sold	THB	30,500	985	Cash In Advance	Thailand

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

Origin	Product	Transaction Type	Offers (USD/ton)	Delivery Country
Malaysia	PP Block Copolymer	Sold	980-990	Southeast Asia
Malaysia	PP Homo Raffia	Sold	920	Southeast Asia
Vietnam	PP Homo Raffia	Sold	960	Philippines

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)

Origin	Product	Transaction Type	Currency	Offers/ton	Equivalent in USD/ton	Payment Term	Delivery Country
Malaysia	PP Block Copolymer	Price List	MYR	4,160-4,320	970-1,008	30 Days Credit Term	Malaysia
Philippines	PP Homo Film	Offer Received	PHP	62,000-63,000	1,109-1,127	Cash In Advance	Philippines
Thailand	PP Homo Film	Offer Given	THB	37,000	1,196	Cash In Advance	Thailand
Thailand	PP Homo Film	Offer Received	THB	36,000	1,163	Cash In Advance	Thailand
Thailand	PP Homo Injection	Offer Given	THB	35,000-36,000	1,131-1,163	Cash In Advance	Thailand
Thailand	PP Homo Injection	Offer Received	THB	35,000-35,500	1,131-1,147	Cash In Advance	Thailand
Malaysia	PP Homo Raffia	Purchased	MYR	4,300	1,003	Cash In Advance	Malaysia
Philippines	PP Homo Raffia	Offer Received	PHP	61,000	1,091	Cash In Advance	Philippines
Thailand	PP Homo Raffia	Offer Given	THB	35,000-36,000	1,131-1,163	Cash In Advance	Thailand
Thailand	PP Homo Raffia	Offer Received	THB	35,000-35,500	1,131-1,147	Cash In Advance	Thailand

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

Origin	Product	Transaction Type	Offers (USD/ton)	Delivery Country
Southeast Asia	PP Block Copolymer	Price List	1,000-1,060	Malaysia
Middle East	PP Homo Film	Offer Received	990	Philippines
Southeast Asia	PP Homo Film	Offer Received	1,020	Philippines
Southeast Asia	PP Homo Injection	Price List	960	Malaysia
Southeast Asia	PP Homo Raffia	Sold*	980	Philippines

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)

Origin	Product	Transaction Type	Currency	Offers/ton	Equivalent in USD/ton	Payment Term	Delivery Country
Malaysia	PP Block Copolymer	Offer Given	MYR	4,440	1,036	30 Days Credit Term	Malaysia
Malaysia	PP Block Copolymer	Price List	MYR	4,440-4,510	1,036	30 Days Credit Term	Malaysia
Malaysia	PP Homo Film	Price List	MYR	4,550	1,061	30 Days Credit Term	Malaysia
Malaysia	PP Homo Injection	Offer Given	MYR	4,350	1,015	30 Days Credit Term	Malaysia
Malaysia	PP Homo Injection	Price List	MYR	4,350	1,015	30 Days Credit Term	Malaysia
Malaysia	PP Homo Raffia	Offer Given	MYR	4,400-4,450	1,027-1,038	30 Days Credit Term	Malaysia
Malaysia	PP Homo Raffia	Price List	MYR	4,400-4,450	1,027-1,038	30 Days Credit Term	Malaysia
Philippines	PP Homo Raffia	Offer Received	PHP	64,000	1,145	Cash In Advance	Philippines
Thailand	PP Homo Raffia	Offer Given	THB	35,000-36,000	1,131-1,163	Cash In Advance	Thailand
Malaysia	PP Random Copolymer Extrusion	Price List	MYR	4,820-4,880	1,142-1,139	30 Days Credit Term	Malaysia

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

Origin	Product	Transaction Type	Offers (USD/ton)	Delivery Country
Middle East	PP Homo Injection	Offer Received	1,010	Southeast 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)

MonthlySSESSMENTS: June SEA PP Prices

Author: SSESSMENTS

MonthlySSESSMENTS: June SEA PP Prices

Author: SSESSMENTS

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