MonthlySSESSMENTS: October SEA PS Prices

Author: SSESSMENTS


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  • PS prices in Southeast Asia market during October were stable to decrease

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  • Tight supply reported in Indonesia ahead of maintenance shutdown at Trinseo 

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  • Subtle demand predicted to prolong until the year-end


PS prices in the Southeast Asia local and import market during October were stable to decrease. On October 4, SSESSMENTS.COM noted that local offers for PS in Southeast Asia were mostly stable. However, a Thai producer was willing to provide a room for negotiation of up to THB1,000/ton ($32.8/ton) depend on the purchasing volume. In the third week of the month, commencing October 14, Indonesian traders were adjusted down the offers for GPPS Injection and HIPS Injection between IDR500,000-600,000/ton ($35.6-42.7/ton) to attract buyers despite the limited stocks. While local offers for HIPS Injection in Malaysia captured decreased by $10/ton on October 11 and $20/ton on October 25, all compared to a week earlier. 


In the import market, an upward price adjustment captured in the first week of the month. Import Singaporean GPPS cargoes to Indonesia for October shipment increased by $20/ton as compared to September’s level. While on the week commencing October 14, the Singaporean PS producer ceased the offers due to the volatile SM prices. On the week commencing October 21, the producer made a significant price reduction by $70/ton as compared to the offer level at the beginning of the month, as noted by SSESSMENTS.COM. Likewise, the decreases of $30/ton for GPPS and $50/ton for HIPS were seen on the import offers of Taiwan origin to Vietnam market. 


The overall demand for GPPS and HIPS during October was subtle. Sufficient inventory on hand, slow sales for the end products, buyers’ stance to adopt a wait-and-see position, and the volatility of SM prices have dampened the buying sentiment. In the last week of the month, a distributor based in Malaysia was even willing to sell at a loss for cargoes previously purchased at higher prices to maintain cash flows amid the downtrend in SM prices, SSESSMENTS.COM was told.


On the supply front, tight supply reported in Indonesia due to the upcoming maintenance shutdown at Trinseo’s 85,000 tons/year PS plant. The producer has planned to shut the plant for maintenance work for about three weeks in December. SSESSMENTS.COM was told that the producer will reduce the allocation for November and December delivery by 1,000 tons from the normal allocation of 6,000 tons.


Looking ahead, Southeast Asian market players believe that PS prices still have room for a further reduction, while demand is predicted to remain subtle until the year-end. However, the adjustment would not be significant as the current levels are already near the bottom, as stated to SSESSMENTS.COM.















 

Tags: Asia Pacific,English,EN STYRENICS SEA MSS,MonthlySSESSMENTS,Southeast Asia,Styrenics PS Prices,SEA PS Prices

December 9, 2019 3:45 PM