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MonthlySSESSMENTS: May SEA PP Prices

Author: SSESSMENTS

  • Local and import PP offers in the Southeast Asia market mostly moving on the same trend
  • Thailand’s IRPC to shut PP plants for maintenance purposes starting from June 12
  • Players doubted that the current PP price trend will sustain

According to the data collected by SSESSMENTS.COM’s team, local PP offers in the Southeast Asia PP market were mostly moving on the same trend week over week throughout May. In Malaysia, May delivery offers for PP Homopolymer grades from the local producer remained stable compared to April, while for PP Copolymer grades were down by MYR250-260/ton ($58-60/ton) compared to the same period. On the week commencing May 4, some deals were closed at MYR3,650/ton ($844/ton) on cash, FD Malaysia basis and excluding 6% SST, or MYR100/ton ($23/ton) lower than the initial offer level. In Thailand, offers for PP Homopolymer grades from the local producers were mostly captured on an uptrend during May, with a range of increase of between THB500-1,000/ton ($16-31/ton) week over week. The price increment in Thailand was made due to the absence of sales and inventory pressure in the first half of the month and supply shortage from the producers’ end during the second half. Despite the upward adjustment, some buyers were still placing bids at THB500-1,000/ton ($16-31/ton) lower from the initial offer levels. Detailed information for Indonesia and Vietnam market is available in MonthlySSESSMENTS of the respective countries. 

In the import market, SSESSMENTS.COM noted that June shipment offers for PP Homopolymer grades from a Malaysian polyolefins producer to the Philippines recorded at $20/ton higher on the monthly comparison. The increment was in accordance with Philippines traders’ opinion, which stated that there would be no longer low import PP offers to the country as prices were on an uptrend. Owing to the upward trend  in prices as well, most buyers in Myanmar decided to delay the procurement activities. As noted, import offers for Saudi PP Homo Raffia to Myanmar surged between $30-40/ton compared to the offers available in late April. 

In the first half of May, the overall demand for PP resins within the Southeast Asia market were dull on the back of the sluggish sales for converters’ end-products. However, operating rate at the converters in the Philippines and Malaysia has started to increase as the government in each country has eased the lockdown regulation on the week starting May 4. Particularly in Malaysia, some players stated that PP demand was improving since the beginning of the month as some converters needed to replenish their stocks since they just resumed production at the time. In the final week of the month,  SSESSMENTS.COM was told that market activities in Southeast Asia were back to the hollow state amid Eid Al-Fitr holiday. Market players in Malaysia halted trading activities as the government set Eid holidays during the first two days of the week, while the Philippines market took a break on Monday, May 25. From Thailand, suppliers reported that customers were showing resistance towards the latest upward price adjustments as most had placed orders beforehand. 

On the production sector, a source with knowledge of matter stated that Thailand’s Integrated Refinery Petrochemical Complex (IRPC) has planned to conduct maintenance shutdown at the company’s PP line no. 3 and 4 in the middle of June. Further added to SSESSMENTS.COM, the company will likely undergo the maintenance at its no. 3 PP line for 15 days starting from June 12 and followed by the no. 4 PP line for 30 days. Located in Rayong Province, Thailand, PP line no. 3 and no. 4 have a production capacity of 225,000 tons/year and 160,000 tons/year, respectively. 

Looking into June, the majority of market players in Southeast Asia, especially in the Thailand market, believe that the pricing outlook for PP would not be bright in the near term as orders for the end products continue to be affected by the Coronavirus pandemic. As such, most Thai producers opined to SSESSMENTS.COM that the sustainability of the current uptrend would not be long-lived and PP prices might eventually go down again in the near term. 

Click below to view related stories and content on SEA PP:

WeeklySSESSMENTS: SEA PP Prices Week Starting May 4

WeeklySSESSMENTS: SEA PP Prices Week Starting May 11

WeeklySSESSMENTS: SEA PP Prices Week Starting May 18

WeeklySSESSMENTS: SEA PP Prices Week Starting May 25

Range of local/localized PP offers between May 1 to May 8 on FD basis and excluding VAT (except in PHP including 12% VAT, all equivalent in USD excluding VAT)

OriginProductTransaction TypeCurrencyOffers/tonEquivalent in USD/tonPayment TermDelivery Country
MalaysiaPP Homo FilmOffer GivenMYR3,95091430 Days Credit TermMalaysia
MalaysiaPP Homo FilmPrice ListMYR3,95091430 Days Credit TermMalaysia
ThailandPP Homo FilmBuy IdeaTHB26,500835Cash In AdvanceThailand
ThailandPP Homo FilmOffer GivenTHB28,500-29,000898-914Cash In AdvanceThailand
ThailandPP Homo FilmOffer ReceivedTHB28,500898Cash In AdvanceThailand
ThailandPP Homo FilmSell IdeaTHB27,500-28,000866-882Cash In AdvanceThailand
MalaysiaPP Homo InjectionPrice ListMYR3,75086730 Days Credit TermMalaysia
Southeast AsiaPP Homo InjectionOffer GivenPHP62,000-65,0001,097-1,150Cash In AdvancePhilippines
ThailandPP Homo InjectionOffer GivenTHB27,250-28,500858-898Cash In AdvanceThailand
ThailandPP Homo InjectionOffer ReceivedTHB28,000882Cash In AdvanceThailand
ThailandPP Homo InjectionSell IdeaTHB27,000-27,500850-866Cash In AdvanceThailand
ThailandPP Homo InjectionSell IdeaTHB27,500866Cash In AdvanceThailand
MalaysiaPP Homo RaffiaOffer ReceivedMYR3,75086730 Days Credit TermMalaysia
MalaysiaPP Homo RaffiaPurchasedMYR3,65084430 Days Credit TermMalaysia
MalaysiaPP Homo RaffiaPrice ListMYR3,800-3,850879-89030 Days Credit TermMalaysia
PhilippinesPP Homo RaffiaOffer GivenPHP67,0001,185Cash In AdvancePhilippines
Southeast AsiaPP Homo RaffiaOffer GivenPHP62,000-65,0001,097-1,150Cash In AdvancePhilippines
ThailandPP Homo RaffiaBuy IdeaTHB26,000819Cash In AdvanceThailand
ThailandPP Homo RaffiaOffer GivenTHB27,250-28,500858-898Cash In AdvanceThailand
ThailandPP Homo RaffiaOffer ReceivedTHB28,000882Cash In AdvanceThailand
ThailandPP Homo RaffiaSell IdeaTHB27,000-27,500850-866Cash In AdvanceThailand

Range of import PP offers between May 1 to May 8 on LC at sight, CIF Main Port basis

OriginProductTransaction TypeOffers (USD/ton)Delivery Country
Middle EastPP Homo FilmOffer Received890Philippines
Middle EastPP Homo FilmPrice List910Philippines
Middle EastPP Homo InjectionPrice List910Philippines
Middle EastPP Homo RaffiaPrice List880Philippines
Middle EastPP Random Copolymer InjectionPrice List1,020Philippines

Range of local PP offers between May 11 to May 15 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 FilmPrice ListMYR3,95091430 Days Credit TermMalaysia
ThailandPP Homo FilmBid ReceivedTHB28,000882Cash In AdvanceThailand
ThailandPP Homo FilmOffer GivenTHB28,500-29,000898-914Cash In AdvanceThailand
ThailandPP Homo FilmOffer ReceivedTHB29,000914Cash In AdvanceThailand
ThailandPP Homo FilmPurchasedTHB28,250890Cash In AdvanceThailand
MalaysiaPP Homo InjectionPrice ListMYR3,75086730 Days Credit TermMalaysia
ThailandPP Homo InjectionBid ReceivedTHB27,500866Cash In AdvanceThailand
ThailandPP Homo InjectionOffer GivenTHB28,000-28,500882-898Cash In AdvanceThailand
ThailandPP Homo InjectionOffer ReceivedTHB28,500898Cash In AdvanceThailand
ThailandPP Homo InjectionPurchasedTHB28,000882Cash In AdvanceThailand
MalaysiaPP Homo RaffiaPrice ListMYR3,800-3,850879-89030 Days Credit TermMalaysia
PhilippinesPP Homo RaffiaOffer GivenPHP67,0001,185Cash In AdvancePhilippines
ThailandPP Homo RaffiaBid ReceivedTHB27,500866Cash In AdvanceThailand
ThailandPP Homo RaffiaOffer GivenTHB28,000-28,500882-898Cash In AdvanceThailand
ThailandPP Homo RaffiaOffer ReceivedTHB28,500898Cash In AdvanceThailand

Range of import PP offers between May 11 to May 15 on LC at sight, CIF Main Port basis

OriginProductTransaction TypeOffers (USD/ton)Delivery Country
Southeast AsiaPP Block CopolymerOffer Received920Philippines
Southeast AsiaPP Homo FilmOffer Received900Philippines
Southeast AsiaPP Homo InjectionOffer Received850-870Philippines
Southeast AsiaPP Homo RaffiaOffer Received850-870Philippines
Middle EastPP Homo RaffiaOffer Received850-860Myanmar
Southeast AsiaPP Homo RaffiaOffer Given850-870Southeast Asia

Range of local/localized PP offers between May 18 to May 22 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 FilmPrice ListMYR3,95091430 Days Credit TermMalaysia
MalaysiaPP Homo FilmOffer GivenMYR3,95091430 Days Credit TermMalaysia
ThailandPP Homo FilmOffer GivenTHB30,000-30,500945-961Cash In AdvanceThailand
MalaysiaPP Homo InjectionPrice ListMYR3,75086730 Days Credit TermMalaysia
Southeast AsiaPP Homo InjectionOffer GivenPHP62,000-65,0001,097-1,150Cash In AdvancePhilippines
ThailandPP Homo InjectionOffer GivenTHB29,500929Cash In AdvanceThailand
MalaysiaPP Homo RaffiaPrice ListMYR3,800-3,850879-89030 Days Credit TermMalaysia
PhilippinesPP Homo RaffiaOffer GivenPHP67,0001,185Cash In AdvancePhilippines
Southeast AsiaPP Homo RaffiaOffer GivenPHP62,000-65,0001,097-1,150Cash In AdvancePhilippines
ThailandPP Homo RaffiaOffer GivenTHB29,500929Cash In AdvanceThailand
ThailandPP Homo RaffiaSoldTHB29,500929Cash In AdvanceThailand

Range of local PP offers between May 25 to May 29 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 FilmPrice ListMYR3,95091430 Days Credit TermMalaysia
ThailandPP Homo FilmOffer GivenTHB31,500992Cash In AdvanceThailand
ThailandPP Homo FilmOffer ReceivedTHB31,000-31,500976-992Cash In AdvanceThailand
ThailandPP Homo FilmOffer ReceivedTHB31,00097630 Days Credit TermThailand
MalaysiaPP Homo InjectionPrice ListMYR3,75086730 Days Credit TermMalaysia
ThailandPP Homo InjectionOffer GivenTHB30,500961Cash In AdvanceThailand
ThailandPP Homo InjectionOffer ReceivedTHB30,000-30,500945-961Cash In AdvanceThailand
ThailandPP Homo InjectionSoldTHB28,000-28,500882-898Cash In AdvanceThailand
MalaysiaPP Homo RaffiaOffer GivenMYR4,08094430 Days Credit TermMalaysia
MalaysiaPP Homo RaffiaOffer ReceivedMYR4,13095530 Days Credit TermMalaysia
MalaysiaPP Homo RaffiaPrice ListMYR3,800-3,850879-89030 Days Credit TermMalaysia
PhilippinesPP Homo RaffiaOffer GivenPHP67,0001,185Cash In AdvancePhilippines
ThailandPP Homo RaffiaOffer GivenTHB30,500961Cash In AdvanceThailand
ThailandPP Homo RaffiaOffer ReceivedTHB30,000-30,500945-961Cash In AdvanceThailand
ThailandPP Homo RaffiaSoldTHB28,000-28,500882-898Cash In AdvanceThailand

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

Published on June 2, 2020 1:17 PM (GMT+8)
Last Updated on June 2, 2020 1:17 PM (GMT+8)