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MonthlySSESSMENTS: March SEA PP Prices

Author: SSESSMENTS

  • Local offers were stable to soft during March
  • Demand was dull as sentiment eroded amid Corona pandemic
  • Local, import offers expected to dip further if Coronavirus outbreak unresolved

According to data gathered by SSESSMENTS.COM’s team, local offers in the Southeast Asia PP market were stable to soft during March. In Malaysia, March delivery offers from the local producer edged down by MYR100/ton ($23/ton) for PP Homopolymer and Copolymer grades, except for PP Homo Injection dropped by MYR150/ton ($34.5/ton) from February. In Thailand, PP Homopolymer offers from the local producers recorded a total reduction of between THB2,500-3,500/ton ($76-106/ton). Meanwhile, local offers in the Philippines market were generally stable as there were no new offers from the leading polyolefins producer during the month due to the needs to clear some backlogs. As SSESSMENTS.COM noted, one of the local PP producers in Thailand skipped offering to the market on the week commencing March 9, citing that the company needed to monitor crude oil price movement further following the biggest drop by more than 30% since the 1991 Gulf War. Detailed information for Indonesia and Vietnam market is available in MonthlySSESSMENTS of the respective countries. 

In the import market, buyers in Myanmar voiced out their buy idea for Middle Eastern cargoes at $900/ton on LC at sight, CIF Myanmar Main Port basis at the beginning of March. At that time, such a level was deemed too low by the suppliers considering higher freight cost compared to other Southeast Asian countries. For India origin cargoes, SSESSMENTS.COM data showed that deals for PP Homo Raffia broke below $900/ton-level by the week commencing March 23, concluded at $845/ton on LC at sight, CIF Southeast Asia Main Port basis. For PP Homo Raffia from China, some suppliers increased offers by $10/ton on the week commencing March 2 due to uptrend in China domestic market. However, the firm offers did not receive a good response from Southeast Asian buyers. As such, offers for the cargoes were adjusted down by $20/ton on the week commencing March 16. By March 31, PP Homo Raffia cargoes of China origin were captured below $800-threshold and as the lowest offers to Southeast Asia market, stood at $780/ton on LC at sight, CIF Vietnam Main Port basis.

Demand for PP resins in the region reportedly dull throughout March. Market sentiment eroded as confirmed cases of Coronavirus in several countries within the region continued to climb. Converters kept procurements on a hand-to-mouth basis as sales for finished products were slowing down, SSESSMENTS.COM was told. Additionally, most factories in Malaysia and the Philippines were forced to shut due to lockdown imposed by the local government as a measure to curb the spread of the virus. In the logistics sector, cargo delivery in Malaysia was disrupted as logistic lines were not operating following the Movement Control Order announced by the government on March 18. Likewise, no shipment was allowed from Vietnam to Cambodia as the Vietnamese government closed borders between two countries for two weeks starting from March 19.

On the supply front, Philippines JG Summit Petrochemical had no offers by the third week of March, but local traders ensured supply to customers remained normal via imports. Similarly, Thai SCG’s 400,000 tons/year PP plant was running at a reduced rate by the week commencing March 9, but it did not affect supply. Meanwhile, Thailand’s HMC Polymers Co Ltd has resumed production at its PP line no.3 with a capacity of 360,000 tons/year in late March following maintenance for screw replacement since February 26, SSESSMENTS.COM noted.

Entering April, the majority of market players opined that local and import PP offers would continue to dip amid grave concern over Coronavirus. Market players in Thailand commented that local PP offers might break THB25,000/ton-threshold level as demand will remain sluggish amid pandemic. Meanwhile, some others opined that market outlook would be clearer once the lockdown ends, as stated to SSESSMENTS.COM.

Transactions for local PP between March 2 to March 6 on FD basis, excluding VAT (except in PHP term including 12% VAT, all equivalent in USD excluding VAT)

OriginProductTransaction TypeCurrencyOffers/tonEquivalent in USD/tonPayment TermDelivery Location
MalaysiaPP Block CopolymerOffer ReceivedMYR4,7001,07630 Days Credit TermMalaysia
MalaysiaPP Block CopolymerPurchasedMYR4,7001,07630 Days Credit TermMalaysia
MalaysiaPP Homo FilmOffer GivenMYR4,7501,08830 Days Credit TermMalaysia
ThailandPP Homo FilmOffer GivenTHB33,000-34,000998-1,029Cash In AdvanceThailand
ThailandPP Homo FilmOffer ReceivedTHB32,500-32,750983-991Cash In AdvanceThailand
MalaysiaPP Homo InjectionOffer GivenMYR4,5501,04230 Days Credit TermMalaysia
MalaysiaPP Homo InjectionSoldMYR4,5501,04230 Days Credit TermMalaysia
ThailandPP Homo InjectionOffer GivenTHB32,500-33,500983-1,013Cash In AdvanceThailand
ThailandPP Homo InjectionOffer ReceivedTHB32,000-32,250968-976Cash In AdvanceThailand
MalaysiaPP Homo RaffiaOffer GivenMYR4,6001,05330 Days Credit TermMalaysia
MalaysiaPP Homo RaffiaOffer ReceivedMYR4,5501,04230 Days Credit TermMalaysia
MalaysiaPP Homo RaffiaPurchasedMYR4,5401,03930 Days Credit TermMalaysia
MalaysiaPP Homo RaffiaSoldMYR4,6001,05330 Days Credit TermMalaysia
PhilippinesPP Homo RaffiaOffer GivenPHP67,0001,176Cash In AdvancePhilippines
ThailandPP Homo RaffiaOffer GivenTHB32,500-33,500983-1,013Cash In AdvanceThailand
ThailandPP Homo RaffiaOffer ReceivedTHB32,000-32,250968-976Cash In AdvanceThailand

Transactions for import PP between March 2 to March 6 on LC at sight, CIF Main Port basis

OriginProductTransaction TypeOffers (USD/ton)Delivery Country
Southeast AsiaPP Block CopolymerOffer Received1,050Southeast Asia
Middle EastPP Homo FilmOffer Given950-960Malaysia
Middle EastPP Homo FilmBuy Idea930Malaysia
ChinaPP Homo RaffiaOffer Given940Philippines
ChinaPP Homo RaffiaOffer Given940Southeast Asia
Middle EastPP Homo RaffiaOffer Received950Myanmar
Middle EastPP Homo RaffiaBuy Idea900Myanmar
Southeast AsiaPP Homo RaffiaSold960Philippines

Transactions for local PP between March 9 to March 13 on FD basis, excluding VAT (except in PHP term including 12% VAT, all equivalent in USD excluding VAT)

OriginProductTransaction TypeCurrencyOffers/tonEquivalent in USD/tonPayment TermDelivery Location
MalaysiaPP Homo FilmOffer GivenMYR4,5501,04230 Days Credit TermMalaysia
ThailandPP Homo FilmOffer GivenTHB31,500-33,500953-1,013Cash In AdvanceThailand
ThailandPP Homo FilmPurchasedTHB32,000968Cash In AdvanceThailand
MalaysiaPP Homo InjectionOffer GivenMYR4,5501,04230 Days Credit TermMalaysia
ThailandPP Homo InjectionOffer GivenTHB31,500-33,000953-998Cash In AdvanceThailand
MalaysiaPP Homo RaffiaOffer GivenMYR4,6001,05330 Days Credit TermMalaysia
MalaysiaPP Homo RaffiaPurchasedMYR4,300985Cash In AdvanceMalaysia
PhilippinesPP Homo RaffiaOffer GivenPHP67,0001,176Cash In AdvancePhilippines
ThailandPP Homo RaffiaOffer GivenTHB31,000-33,000938-998Cash In AdvanceThailand
ThailandPP Homo RaffiaOffer ReceivedTHB33,5001,013Cash In AdvanceThailand

Transactions for import PP between March 9 to March 13 on LC at sight, CIF Main Port basis

OriginProductTransaction TypeOffers (USD/ton)Delivery Country
Indian SubcontinentPP Homo FilmSold960Myanmar
Southeast AsiaPP Homo InjectionSold950Philippines
ChinaPP Homo RaffiaOffer Given930Philippines
Indian SubcontinentPP Homo RaffiaSold930Myanmar
Southeast AsiaPP Homo RaffiaOffer Received930Thailand

Transactions for local PP between March 16 to March 20 on FD basis, excluding VAT (except in PHP term including 12% VAT, all equivalent in USD excluding VAT)

OriginProductTransaction TypeCurrencyOffers/tonEquivalent in USD/tonPayment TermDelivery Location
MalaysiaPP Homo FilmOffer GivenMYR4,5501,04230 Days Credit TermMalaysia
ThailandPP Homo FilmOffer GivenTHB31,000-32,000938-968Cash In AdvanceThailand
ThailandPP Homo FilmOffer ReceivedTHB31,250945Cash In AdvanceThailand
ThailandPP Homo InjectionOffer GivenTHB30,500-31,500923-953Cash In AdvanceThailand
MalaysiaPP Homo RaffiaOffer GivenMYR4,6001,053Cash In AdvanceMalaysia
PhilippinesPP Homo RaffiaOffer GivenPHP67,0001,176Cash In AdvancePhilippines
ThailandPP Homo RaffiaOffer GivenTHB30,500-31,500923-953Cash In AdvanceThailand
ThailandPP Homo RaffiaOffer ReceivedTHB30,750930Cash In AdvanceThailand

Transactions for import PP between March 16 to March 20 on LC at sight, CIF Main Port basis

OriginProductTransaction TypeOffers (USD/ton)Delivery Country
ChinaPP Homo RaffiaOffer Given910Philippines

Transactions for local PP between March 23 to March 27 on FD basis, excluding VAT (except in PHP term including 12% VAT, all equivalent in USD excluding VAT)

OriginProductTransaction TypeCurrencyOffers/tonEquivalent in USD/tonPayment TermDelivery Location
MalaysiaPP Homo FilmOffer GivenMYR4,5501,04230 Days Credit TermMalaysia
ThailandPP Homo FilmOffer GivenTHB30,500-31,000923-938Cash In AdvanceThailand
ThailandPP Homo FilmSoldTHB31,000938Cash In AdvanceThailand
ThailandPP Homo InjectionOffer GivenTHB30,000-30,500908-923Cash In AdvanceThailand
ThailandPP Homo InjectionSoldTHB30,500923Cash In AdvanceThailand
MalaysiaPP Homo RaffiaOffer GivenMYR4,6001,053Cash In AdvanceMalaysia
PhilippinesPP Homo RaffiaOffer GivenPHP67,0001,176Cash In AdvancePhilippines
ThailandPP Homo RaffiaOffer GivenTHB30,000-30,500908-923Cash In AdvanceThailand
ThailandPP Homo RaffiaSoldTHB30,500923Cash In AdvanceThailand

Transactions for import PP between March 23 to March 27 on LC at sight, CIF Main Port basis

OriginProductTransaction TypeOffers (USD/ton)Delivery Country
Southeast AsiaPP Block CopolymerOffer Received1,010Malaysia
Indian SubcontinentPP Homo RaffiaOffer Given845Southeast Asia
Indian SubcontinentPP Homo RaffiaSold845Southeast Asia
Southeast AsiaPP Homo RaffiaOffer Given850Philippines

Transactions for local PP between March 30 to March 31 on FD basis, excluding VAT in all terms

OriginProductTransaction TypeCurrencyOffers/tonEquivalent in USD/tonDelivery Country
ThailandPP Homo FilmOffer GivenTHB30,000908Thailand
ThailandPP Homo FilmSoldTHB29,500892Thailand
ThailandPP Homo InjectionOffer GivenTHB29,500892Thailand
ThailandPP Homo InjectionSoldTHB29,000877Thailand
ThailandPP Homo RaffiaOffer GivenTHB29,500892Thailand
ThailandPP Homo RaffiaSoldTHB29,000877Thailand

Transactions for import PP between March 30 to March 31 on LC at sight, CIF Main Port basis

OriginProductTransaction TypeOffers (USD/ton)Delivery Country
Middle EastPP Random Copolymer InjectionOffer Received900Thailand
Middle EastPP Random Copolymer InjectionPurchased900Thailand

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

Published on April 3, 2020 2:00 PM (GMT+8)
Last Updated on April 3, 2020 2:15 PM (GMT+8)