quarterlyssessments-q1-2020-sea-pp-prices

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Local, import offers were only firmer in January and softer for the rest of the quarter
Overall demand was subdued due to Coronavirus outbreak
Outlook is blurry, depends on the handling of Coronavirus

SSESSMENTS.COM data showed that PP prices in most Southeast Asian countries were only firmer in January and mostly soft for the rest of Q1 2020. In January, local PP Homopolymers prices in Thailand went up between THB1,000-2,500/ton ($30-76/ton) in total. Tight supply from the local producers was the major reason behind the firm offers during this month. Likewise, January delivery PP offers from a Malaysian polyolefins producer were adjusted up by MYR150/ton ($34/ton) in mid-January, after previously announced with no adjustment on December 27. Moving to February and March, local PP offers in the region started to soften due to sluggish demand amid concern over Coronavirus. During these two months, cumulative reductions made by local suppliers in Thailand were between THB3,500-4,500/ton ($107-137/ton). Similarly, local PP offers via traders in Malaysia dropped between MYR50-100/ton ($11.5-23/ton) in February citing slow sales, despite the local producer proceeded with an upward adjustment of between MYR120-180/ton ($27-41/ton) for February delivery. Eventually, the Malaysian polyolefins producer trimmed its March delivery offers for PP grades between MYR100-150/ton ($23-34/ton) from February. In the Philippines, local PP offers from the country’s leading polyolefins producer remained stable during the quarter. Detailed information for Indonesia and Vietnam market is available in QuarterlySSESSMENTS of the respective countries.

From the import market, SSESSMENTS.COM data showed that an upward trend was only captured at the beginning of the quarter. At the beginning of January, offers for PP Homo Raffia and PP Homo Film of Thailand origin to Vietnam went up by $20/ton on a weekly basis. Likewise, offers for Saudi PP Homo Raffia cargoes to Vietnam increased by the same amount during the same timeframe. For PP Block Copolymer, offers for Singaporean cargoes to Indonesia surged by $30/ton on a monthly comparison. In February, offers for March shipment for PP Homopolymer grades from a Malaysian polyolefins producer to the Philippines dropped $20/ton from February. March shipment offers from a Singaporean producer for PP Homo Raffia dropped drastically by $70/ton while PP Block Copolymer and PP Random Copolymer dipped by $50/ton, all compared to February shipment offers. For Middle Eastern cargoes, a significant reduction of $50/ton was captured on the week ending February 28. For Indian cargoes, offers for re-export cargoes from China dropped by $50/ton in total during February. Moving to March, lower offers became widely available in the region. At this particular month, Indian PP Homo Raffia cargoes broke below $900/ton-level, with deals concluded at $845/ton on LC at sight, CIF Southeast Asia Main Port basis on the week commencing March 23. By the end of the month, import offers for PP Homo Raffia broke another threshold level. On March 31, import China PP Homo Raffia cargoes offered to Vietnam broke below $800/ton, available at $780/ton on LC at sight, CIF Vietnam Main Port basis, which was the lowest offer captured to the Southeast Asia market by that time.

As mentioned earlier, demand for PP resins during the quarter was sluggish in general. Concern over Coronavirus outbreak cited as the biggest factor affected buying sentiment during this quarter. Additionally, the biggest drop in crude oil prices on March 9 following Saudi-Russia’s price war added uncertainties in the market, which led to softer monomer prices. Other than previous factors mentioned, sufficient stock on hand amid sluggish finished product sales at the converters’ end was also a reason for subdued PP resins demand. On the supply front, PP supply from Thai producers was tight during February but had no significant impact on the domestic market as demand was dull. Likewise, supply for PP from the Philippines JG Summit was generally tight during March, but traders cater to domestic demand via imports, as SSESSMENTS.COM noted. In the logistics sector, Coronavirus lockdown and restrictions had disrupted cargo delivery, such as in Malaysia and Vietnam. In the Philippines, month-long lockdown led to congestion at Manila Port and disrupted shipment of import cargoes to the country.

On the production front, Thai IRPC shut its 110,000 tons/year PP line no.1 and 120,000 tons/year PP line no.2 for maintenance shutdown starting from February 4 until February 15. Thai HMC also shut its PP line no.3 with a production capacity of 360,000 tons/year on February 26 for 20-day turnaround maintenance. The plant was later brought back on-stream in late March, as SSESSMENTS.COM noted. In Malaysia, Lotte Chemical Titan shut its whole petrochemical complex for turnaround maintenance in early March for around 25-30 days. The company operates three PP units with a production capacity of 166,000 tons/year, 274,000 tons/year and 200,000 tons/year respectively.

Entering Q2 2020, the majority of market players opined that local and import PP offers still have chances to move lower as concern over Coronavirus dominate the market. Additionally, the volatile crude oil prices also lead to many uncertainties and pushed buyers to the sidelines. Meanwhile, some others remain unsure of the outlook citing the market direction will be clearer once the Coronavirus lockdown is lifted, as stated to SSESSMENTS.COM.

Transactions for local/localized PP in January on FD basis, excluding VAT (except in PHP 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 Received	MYR	4,610	1,068	30 Days Credit Term	Malaysia
Malaysia	PP Block Copolymer	Price List	MYR	4,590-4,660	1,064-1,080	30 Days Credit Term	Malaysia
Malaysia	PP Block Copolymer	Purchased	MYR	4,300	996	Cash In Advance	Malaysia
Malaysia	PP Block Copolymer	Purchased	MYR	4,610	1,068	30 Days Credit Term	Malaysia
Thailand	PP Block Copolymer	Offer Given	THB	33,500	1,023	Cash In Advance	Thailand
Thailand	PP Block Copolymer	Offer Received	THB	34,000	1,039	Cash In Advance	Thailand
Malaysia	PP Homo Film	Offer Given	MYR	4,670-4,820	1,082-1,117	30 Days Credit Term	Malaysia
Malaysia	PP Homo Film	Price List	MYR	4,670	1,082	30 Days Credit Term	Malaysia
Philippines	PP Homo Film	Offer Given	PHP	69,000	1,218	Cash In Advance	Philippines
Philippines	PP Homo Film	Offer Received	PHP	69,000	1,218	Cash In Advance	Philippines
Southeast Asia	PP Homo Film	Offer Given	PHP	67,000	1,182	Cash In Advance	Philippines
Thailand	PP Homo Film	Offer Given	THB	31,000-34,500	947-1,054	Cash In Advance	Thailand
Thailand	PP Homo Film	Offer Received	THB	32,000-33,500	978-1,023	Cash In Advance	Thailand
Thailand	PP Homo Film	Sold	THB	32,500	993	Cash In Advance	Thailand
Malaysia	PP Homo Injection	Offer Received	MYR	4,750	1,101	30 Days Credit Term	Malaysia
Malaysia	PP Homo Injection	Price List	MYR	4,520	1,047	30 Days Credit Term	Malaysia
Philippines	PP Homo Injection	Offer Given	PHP	68,000	1,200	Cash In Advance	Philippines
Philippines	PP Homo Injection	Offer Received	PHP	68,000-69,000	1,200-1,218	Cash In Advance	Philippines
Thailand	PP Homo Injection	Bid Received	THB	32,000	978	Cash In Advance	Thailand
Thailand	PP Homo Injection	Offer Given	THB	31,000-34,000	947-1,039	Cash In Advance	Thailand
Thailand	PP Homo Injection	Offer Received	THB	32,500-33,000	993-1,008	Cash In Advance	Thailand
Thailand	PP Homo Injection	Sold	THB	32,000	978	Cash In Advance	Thailand
Malaysia	PP Homo Raffia	Offer Given	MYR	4,520	1,047	30 Days Credit Term	Malaysia
Malaysia	PP Homo Raffia	Offer Received	MYR	4,500	1,043	Cash In Advance	Malaysia
Malaysia	PP Homo Raffia	Price List	MYR	4,520-4,570	1,047-1,059	30 Days Credit Term	Malaysia
Malaysia	PP Homo Raffia	Purchased	MYR	4,500	1,043	Cash In Advance	Malaysia
Philippines	PP Homo Raffia	Offer Given	PHP	68,000	1,200	Cash In Advance	Philippines
Philippines	PP Homo Raffia	Offer Received	PHP	68,000-69,000	1,200-1,218	Cash In Advance	Philippines
Southeast Asia	PP Homo Raffia	Offer Given	PHP	66,000	1,165	Cash In Advance	Philippines
Thailand	PP Homo Raffia	Bid Received	THB	32,000	978	Cash In Advance	Thailand
Thailand	PP Homo Raffia	Buy Idea	THB	31,000-32,000	947-978	Cash In Advance	Thailand
Thailand	PP Homo Raffia	Offer Given	THB	30,500-34,500	932-1,054	Cash In Advance	Thailand
Thailand	PP Homo Raffia	Offer Received	THB	31,500-34,500	962-1,054	Cash In Advance	Thailand
Thailand	PP Homo Raffia	Purchased	THB	32,000-33,000	978-1,008	Cash In Advance	Thailand
Thailand	PP Homo Raffia	Sold	THB	32,000-33,500	978-1,023	Cash In Advance	Thailand
Malaysia	PP Random Copolymer Extrusion	Price List	MYR	4,950-5,600	1,147-1,298	30 Days Credit Term	Malaysia
Thailand	PP Random Copolymer Injection	Offer Given	THB	37,500	1,146	Cash In Advance	Thailand

Transactions for import PP in January on LC at sight, CIF/CFR Main Port basis

Origin	Product	Transaction Type	Offers (USD/ton)	Delivery Country
Southeast Asia	PP Block Copolymer	Offer Received	1,160	Malaysia
Southeast Asia	PP Block Copolymer	Purchased	1,140	Malaysia
Southeast Asia	PP Block Copolymer	Offer Given	1,100	Philippines
Southeast Asia	PP Block Copolymer	Offer Received	1,200	Philippines
Southeast Asia	PP Block Copolymer	Offer Received	1,170-1,180	Southeast Asia
Southeast Asia	PP Block Copolymer	Price List	1,150	Southeast Asia
Indian Subcontinent	PP Homo Film	Offer Given	1,040	Myanmar
Indian Subcontinent	PP Homo Film	Sold	1,040	Myanmar
Southeast Asia	PP Homo Film	Offer Given	1,050	Philippines
Southeast Asia	PP Homo Film	Offer Received	1,150	Philippines
Southeast Asia	PP Homo Film	Purchased	1,040	Philippines
Southeast Asia	PP Homo Film	Sold	1,050	Philippines
Southeast Asia	PP Homo Film	Offer Given	1,080-1,100	Southeast Asia
Southeast Asia	PP Homo Injection	Offer Given	1,020	Philippines
China	PP Homo Raffia	Offer Received	965-975	Philippines
Indian Subcontinent	PP Homo Raffia	Offer Given	1,010	Myanmar
Indian Subcontinent	PP Homo Raffia	Sold	1,010-1,020	Myanmar
Indian Subcontinent	PP Homo Raffia	Offer Given	980	Southeast Asia
Indian Subcontinent	PP Homo Raffia	Sold	980	Southeast Asia
Middle East	PP Homo Raffia	Buy Idea	980-990	Myanmar
Middle East	PP Homo Raffia	Sold	1,020	Myanmar
Middle East	PP Homo Raffia	Offer Received	980	Thailand
Southeast Asia	PP Homo Raffia	Offer Received	1,040-1,120	Myanmar
Southeast Asia	PP Homo Raffia	Bid Received	1,030-1,040	Philippines
Southeast Asia	PP Homo Raffia	Offer Given	1,020-1,100	Philippines
Southeast Asia	PP Homo Raffia	Offer Received	1,080	Philippines
Southeast Asia	PP Homo Raffia	Sold	1,020	Philippines
Southeast Asia	PP Homo Raffia	Offer Given	990-1,070	Southeast Asia
Southeast Asia	PP Homo Raffia	Price List	1,120	Southeast Asia
Southeast Asia	PP Random Copolymer Blow	Offer Received	1,240	Malaysia
Southeast Asia	PP Random Copolymer Blow	Purchased	1,240	Malaysia
Southeast Asia	PP Random Copolymer Injection	Price List	1,210	Southeast Asia

Transactions for local PP in February on FD basis, excluding VAT (except in PHP 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	4,670-4,840	1,082-1,122	30 Days Credit Term	Malaysia
Malaysia	PP Block Copolymer	Purchased	MYR	4,770	1,105	30 Days Credit Term	Malaysia
Malaysia	PP Homo Film	Price List	MYR	4,850	1,124	30 Days Credit Term	Malaysia
Thailand	PP Homo Film	Offer Given	THB	33,000-34,500	1,008-1,054	Cash In Advance	Thailand
Thailand	PP Homo Film	Sell Idea	THB	33,000	1,008	Cash In Advance	Thailand
Thailand	PP Homo Film	Sold	THB	33,500	1,023	Cash In Advance	Thailand
Malaysia	PP Homo Film	Offer Given	MYR	4,750-4,850	1,101-1,124	30 Days Credit Term	Malaysia
Malaysia	PP Homo Film	Offer Received	USD	1,050	-	30 Days Credit Term	Malaysia
Malaysia	PP Homo Film	Price List	MYR	4,750	1,101	30 Days Credit Term	Malaysia
Malaysia	PP Homo Film	Purchased	USD	1,050	-	30 Days Credit Term	Malaysia
Philippines	PP Homo Film	Offer Given	PHP	68,000-69,000	1,200-1,218	Cash In Advance	Philippines
Thailand	PP Homo Film	Offer Given	THB	33,500-34,500	1,023-1,054	Cash In Advance	Thailand
Thailand	PP Homo Film	Offer Received	THB	33,000	1,008	Cash In Advance	Thailand
Thailand	PP Homo Film	Sold	THB	33,000	1,008	Cash In Advance	Thailand
Malaysia	PP Homo Injection	Price List	MYR	4,550-4,700	1,054-1,089	30 Days Credit Term	Malaysia
Thailand	PP Homo Injection	Offer Given	THB	32,500-34,000	993-1,039	Cash In Advance	Thailand
Thailand	PP Homo Injection	Offer Received	THB	32,500	993	Cash In Advance	Thailand
Thailand	PP Homo Injection	Sell Idea	THB	32,500	993	Cash In Advance	Thailand
Thailand	PP Homo Injection	Sold	THB	32,500-34,000	993-1,039	Cash In Advance	Thailand
Malaysia	PP Homo Raffia	Offer Received	MYR	4,220-4,650	978-1,077	30 Days Credit Term	Malaysia
Malaysia	PP Homo Raffia	Offer Received	USD	1,050	-	30 Days Credit Term	Malaysia
Malaysia	PP Homo Raffia	Price List	MYR	4,600-4,750	1,066-1,101	30 Days Credit Term	Malaysia
Malaysia	PP Homo Raffia	Purchased	MYR	4,220-4,650	978-1,077	30 Days Credit Term	Malaysia
Malaysia	PP Homo Raffia	Sold	MYR	4,650	1,077	30 Days Credit Term	Malaysia
Philippines	PP Homo Raffia	Offer Given	PHP	67,000	1,182	Cash In Advance	Philippines
Philippines	PP Homo Raffia	Offer Received	PHP	68,000	1,200	Cash In Advance	Philippines
Thailand	PP Homo Raffia	Offer Given	THB	32,500-34,000	993-1,039	Cash In Advance	Thailand
Thailand	PP Homo Raffia	Offer Received	THB	32,500-34,000	993-1,039	Cash In Advance	Thailand
Thailand	PP Homo Raffia	Sell Idea	THB	32,500	993	Cash In Advance	Thailand
Thailand	PP Homo Raffia	Sold	THB	32,500-34,000	993-1,039	Cash In Advance	Thailand
Malaysia	PP Random Copolymer Extrusion	Price List	MYR	4,970-5,720	1,152-1,325	30 Days Credit Term	Malaysia

Transactions for import PP in February on LC at sight, CIF/CFR Main Port basis

Origin	Product	Transaction Type	Offers (USD/ton)	Delivery Country
Southeast Asia	PP Block Copolymer	Price List	1,100	Malaysia
Southeast Asia	PP Block Copolymer	Offer Received	1,150	Southeast Asia
Middle East	PP Homo Film	Offer Given	990	Malaysia
Middle East	PP Homo Film	Sold	990	Malaysia
Middle East	PP Homo Film	Offer Received	970	Thailand
Southeast Asia	PP Homo Film	Offer Given	1,130	Philippines
Southeast Asia	PP Homo Film	Offer Received	1,000-1,070	Philippines
Southeast Asia	PP Homo Injection	Offer Given	970-1,100	Philippines
Southeast Asia	PP Homo Injection	Sold	1,090	Philippines
Southeast Asia	PP Homo Injection	Offer Received	1,040-1,050	Thailand
China	PP Homo Raffia	Offer Given	960	Southeast Asia
Far East Asia	PP Homo Raffia	Offer Received	950	Myanmar
Middle East	PP Homo Raffia	Offer Received	960-1,020	Myanmar
Southeast Asia	PP Homo Raffia	Offer Given	1,020	Malaysia
Southeast Asia	PP Homo Raffia	Price List	1,050	Malaysia
Southeast Asia	PP Homo Raffia	Purchased	1,120	Malaysia
Southeast Asia	PP Homo Raffia	Sold	1,020	Malaysia
Southeast Asia	PP Homo Raffia	Offer Given	970-1,100	Philippines
Southeast Asia	PP Homo Raffia	Offer Received	930-1,090	Philippines
Southeast Asia	PP Homo Raffia	Sold	1,090	Philippines
Southeast Asia	PP Homo Raffia	Offer Received	970-1,050	Thailand
Southeast Asia	PP Homo Raffia	Purchased	970	Thailand
Southeast Asia	PP Random Copolymer Injection	Price List	1,160	Malaysia

Transactions for local PP in March on FD basis, excluding VAT (except in PHP 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	Offer Received	MYR	4,700	1,089	30 Days Credit Term	Malaysia
Malaysia	PP Block Copolymer	Purchased	MYR	4,700	1,089	30 Days Credit Term	Malaysia
Malaysia	PP Homo Film	Offer Given	MYR	4,550-4,750	1,054-1,101	30 Days Credit Term	Malaysia
Thailand	PP Homo Film	Offer Given	THB	30,000-34,000	916-1,039	Cash In Advance	Thailand
Thailand	PP Homo Film	Offer Received	THB	31,250-32,750	955-1,001	Cash In Advance	Thailand
Thailand	PP Homo Film	Purchased	THB	32,000	978	Cash In Advance	Thailand
Thailand	PP Homo Film	Sold	THB	29,500-31,000	901-947	Cash In Advance	Thailand
Malaysia	PP Homo Injection	Offer Given	MYR	4,550	1,054	30 Days Credit Term	Malaysia
Malaysia	PP Homo Injection	Sold	MYR	4,550	1,054	30 Days Credit Term	Malaysia
Thailand	PP Homo Injection	Offer Given	THB	29,500-33,500	901-1,023	Cash In Advance	Thailand
Thailand	PP Homo Injection	Offer Received	THB	32,000-32,250	978-985	Cash In Advance	Thailand
Thailand	PP Homo Injection	Sold	THB	29,000-30,500	886-932	Cash In Advance	Thailand
Malaysia	PP Homo Raffia	Offer Given	MYR	4,600	1,066	30 Days Credit Term	Malaysia
Malaysia	PP Homo Raffia	Offer Given	MYR	4,600	1,066	Cash In Advance	Malaysia
Malaysia	PP Homo Raffia	Offer Received	MYR	4,100-4,550	950-1,054	30 Days Credit Term	Malaysia
Malaysia	PP Homo Raffia	Purchased	MYR	4,540	1,052	30 Days Credit Term	Malaysia
Malaysia	PP Homo Raffia	Purchased	MYR	4,300	996	Cash In Advance	Malaysia
Malaysia	PP Homo Raffia	Sold	MYR	4,600	1,066	30 Days Credit Term	Malaysia
Philippines	PP Homo Raffia	Offer Given	PHP	67,000	1,182	Cash In Advance	Philippines
Thailand	PP Homo Raffia	Offer Given	THB	29,500-33,500	901-1,023	Cash In Advance	Thailand
Thailand	PP Homo Raffia	Offer Received	THB	30,750-33,500	939-1,023	Cash In Advance	Thailand
Thailand	PP Homo Raffia	Sold	THB	29,000-30,500	886-932	Cash In Advance	Thailand

Transactions for import PP in March on LC at sight, CIF Main Port basis

Origin	Product	Transaction Type	Offers (USD/ton)	Delivery Country
Southeast Asia	PP Block Copolymer	Offer Received	1,010	Malaysia
Southeast Asia	PP Block Copolymer	Offer Received	1,050	Southeast Asia
Indian Subcontinent	PP Homo Film	Sold	960	Myanmar
Middle East	PP Homo Film	Buy Idea	930	Malaysia
Middle East	PP Homo Film	Offer Given	950-960	Malaysia
Southeast Asia	PP Homo Injection	Sold	950	Philippines
China	PP Homo Raffia	Offer Given	910-940	Philippines
China	PP Homo Raffia	Offer Given	940	Southeast Asia
Indian Subcontinent	PP Homo Raffia	Sold	930	Myanmar
Indian Subcontinent	PP Homo Raffia	Offer Given	845	Southeast Asia
Indian Subcontinent	PP Homo Raffia	Sold	845	Southeast Asia
Middle East	PP Homo Raffia	Buy Idea	900	Myanmar
Middle East	PP Homo Raffia	Offer Received	820-950	Myanmar
Southeast Asia	PP Homo Raffia	Offer Given	850	Philippines
Southeast Asia	PP Homo Raffia	Sold	960	Philippines
Southeast Asia	PP Homo Raffia	Offer Received	930	Thailand
Middle East	PP Random Copolymer Injection	Offer Received	900	Thailand
Middle East	PP Random Copolymer Injection	Purchased	900	Thailand

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

Published on April 11, 2020 4:51 PM (GMT+8)
Last Updated on April 11, 2020 9:49 PM (GMT+8)

QuarterlySSESSMENTS: Q1 2020 SEA PP Prices

Author: SSESSMENTS

QuarterlySSESSMENTS: Q1 2020 SEA PP Prices

Author: SSESSMENTS

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