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QuarterlySSESSMENTS: Q2 2020 SEA PS Prices

Author: SSESSMENTS

  • Price movement in Q2 2020 affected by the coronavirus conditions in each country
  • Demand for PS resin dragged down by poor demand for end-products
  • Market players remain unsure of the Q3 2020 demand outlook

According to data collected by SSESSMENTS.COM’s team, overall PS resins demand was subdued throughout Q2 2020 as the Southeast Asia market faced the effects of the coronavirus outbreak. In Indonesia, local GPPS Injection and HIPS Injection offers via traders were relatively stable week-over-week during April before an Indonesian PS producer announced that May delivery offers for both GPPS Injection and HIPS Injection decreased by $110/ton on the monthly comparison on April 30. In Vietnam, local GPPS Injection decreased until it reached the number below $1,000/ton-level for offers in USD denomination.

Moving to May, SSESSMENTS.COM observed various price trends in the local market. From Indonesian traders’ end, offers for local GPPS Injection and HIPS Injection were adjusted down by IDR500,000/ton ($34/ton) after relieving rollercoaster trends in early May. Local GPPS Injection and HIPS in Indonesia then remained stable until the end of the month. While in Vietnam, GPPS Injection offers from a local producer captured firmer by $10/ton compared to a month earlier following the uptrend in crude oil and SM prices. Similar price trend continued going into June as the Southeast Asia market stabilized and tended to soften with news coming from Malaysia that on the week starting June 15, HIPS Injection for June delivery and July shipment allocation had been sold out with offers captured between $970-1,000/ton-level. A Vietnamese producer was only offering GPPS Injection to regular customers with limited quantities at $20-30/ton higher on a weekly comparison. Finally, the Thailand market recorded fresh local offers at THB34,000/ton ($1,087/ton) on the final day of June after going flat throughout the month.

From the import market, April shipment offers for South Korean GPPS and HIPS cargoes via a trader in Indonesia dropped significantly by $120/ton and $80/ton, respectively as compared to March shipment offers. Going into the first half of May, fresh import PS offers were scarce in the Southeast Asia market although Indonesian traders informed SSESSMENTS.COM about Southeast Asian GPPS Injection offers at $830/ton on LC at sight, CIF Indonesia Main Port basis. While for Taiwanese GPPS Injection cargoes, import offers to the Vietnam market were at $825-835/ton on LC at sight, CIF Main Port basis. As for import HIPS Injection cargoes, May shipment deals for HIPS Injection of Taiwan origin to Vietnam via traders were concluded between $930-940/ton with the same payment and delivery terms. Despite one of the Taiwanese PS producers halted their production for GPPS Injection and some grades of HIPS Injection since May, the company was still selling the remaining stocks to the Malaysia market up until June. June shipment offers for GPPS Injection were reported stable, while HIPS Injection recorded up by $50/ton as compared to May shipment offers. The producer also continued to raise HIPS Injection offers by $30/ton for July shipment offers, which according to market players, did not match the sluggish demand. South Korean PS cargoes also underwent a rollercoaster trend throughout June while overall import transactions remained limited in the Southeast Asia market as local PS prices were considered more competitive.

In general, SSESSMENTS.COM noted that Q2 2020 demand for PS resins in the region was subdued due to lockdown and restrictions imposed to contain COVID-19 outbreak. In Malaysia, the PS market was muted due to the Movement Control Order (MCO) from April 12 until May 12. During the MCO, most traders did not have permission to run the business, hence, they were unable to deliver customers' orders. Most manufacturers in Indonesia were only running at 30-40% from normal rates amid large-scale social restrictions while some others halted the production activities. Buyers in Indonesia, Malaysia, and the Philippines preferred to halt procurements or only purchase on a need-basis due to the slow demand for finished products. Moreover, approaching the end of May, trading activities were mostly flat due to the Eid Al-Fitr holiday in Indonesia and Malaysia. In contrast, after the government eased nationwide lockdown in Vietnam from April 22, trading activities in the country gradually picked up and the market was active. As such, healthy demand was recorded in the Vietnam market throughout May. Vietnam then became a leading country seeing their PS resin demand recover going into June after being able to deal with a coronavirus outbreak in the country while the other Southeast Asian countries remained slow. No significant supply issue was reported during the quarter.

For the outlook, market players shared with SSESSMENTS.COM that local and import PS prices will be stable entering Q3 2020 in line with stable SM prices. As for demand, buyers remain unsure of the outlook due to uncertainties in the market on the back of the fears of the second wave of coronavirus outbreak.

Range of local/localized PS transactions in April on FD basis, all excluding VAT

OriginProductTransaction TypeCurrencyOffers/tonEquivalent in USD/tonPayment TermDelivery Country
IndonesiaGPPS InjectionOffer GivenIDR17,500,0001,21330 Days Credit TermIndonesia
IndonesiaGPPS InjectionOffer GivenIDR15,800,000-17,000,0001,095-1,178Cash In AdvanceIndonesia
IndonesiaGPPS InjectionOffer GivenUSD1,040-1,080-Cash In AdvanceIndonesia
IndonesiaGPPS InjectionOffer ReceivedIDR18,300,0001,26860 Days Credit TermIndonesia
IndonesiaGPPS InjectionOffer ReceivedIDR17,000,0001,17890 Days Credit TermIndonesia
IndonesiaGPPS InjectionOffer ReceivedIDR17,000,0001,178Cash In AdvanceIndonesia
IndonesiaGPPS InjectionPurchasedIDR16,800,0001,164Cash In AdvanceIndonesia
IndonesiaGPPS InjectionSell IdeaIDR17,500,0001,21330 Days Credit TermIndonesia
IndonesiaGPPS InjectionSell IdeaUSD950-970-Cash In AdvanceIndonesia
IndonesiaGPPS InjectionSoldIDR17,500,0001,213Cash In AdvanceIndonesia
ThailandGPPS InjectionOffer ReceivedIDR18,000,0001,24760 Days Credit TermIndonesia
ThailandGPPS InjectionOffer ReceivedIDR17,000,0001,17890 Days Credit TermIndonesia
VietnamGPPS InjectionOffer GivenUSD880-1,000-Cash In AdvanceVietnam
VietnamGPPS InjectionSoldUSD880-Cash In AdvanceVietnam
IndonesiaHIPS InjectionOffer GivenIDR18,500,0001,28230 Days Credit TermIndonesia
IndonesiaHIPS InjectionOffer GivenIDR16,800,000-18,500,0001,164-1,282Cash In AdvanceIndonesia
IndonesiaHIPS InjectionOffer GivenUSD1,100-1,140-Cash In AdvanceIndonesia
IndonesiaHIPS InjectionOffer ReceivedIDR19,300,0001,33760 Days Credit TermIndonesia
IndonesiaHIPS InjectionOffer ReceivedIDR18,000,0001,24790 Days Credit TermIndonesia
IndonesiaHIPS InjectionOffer ReceivedIDR18,000,0001,247Cash In AdvanceIndonesia
IndonesiaHIPS InjectionSell IdeaIDR18,500,0001,28230 Days Credit TermIndonesia
IndonesiaHIPS InjectionSell IdeaUSD1,020-1,040-Cash In AdvanceIndonesia
ThailandHIPS InjectionOffer ReceivedIDR19,550,0001,35560 Days Credit TermIndonesia
ThailandHIPS InjectionOffer ReceivedIDR18,000,0001,24790 Days Credit TermIndonesia

Range of import PS transactions in April on LC at sight, CIF Main Port basis

OriginProductTransaction TypeOffers (USD/ton)Delivery Country
SingaporeGPPS InjectionOffer Received920-970Indonesia
South KoreaGPPS InjectionOffer Given860Indonesia
South KoreaGPPS InjectionSell Idea830Indonesia
VietnamGPPS InjectionSold860Myanmar
VietnamGPPS InjectionBid Received850Southeast Asia
VietnamGPPS InjectionOffer Given920Southeast Asia
VietnamGPPS InjectionSold860-870Southeast Asia
VietnamGPPS InjectionSold860Thailand
VietnamGPPS InjectionPurchased820Vietnam
South KoreaHIPS InjectionOffer Given1,000Indonesia

Range of export PS transactions in April on LC at sight, FOB Vietnam basis

OriginProductTransaction TypeOffers (USD/ton)
VietnamGPPS InjectionOffer Given830-900

Range of local/localized PS transactions in May on FD basis, all excluding VAT except in VND term includes 10% VAT

OriginProductTransaction TypeCurrencyOffers/tonEquivalent in USD/tonPayment TermDelivery Country
IndonesiaGPPS InjectionOffer GivenIDR15,000,0001,03930 Days Credit TermIndonesia
IndonesiaGPPS InjectionOffer GivenIDR15,000,000-16,500,0001,039-1,143Cash In AdvanceIndonesia
IndonesiaGPPS InjectionOffer ReceivedIDR16,000,000-16,600,0001,109-1,15090 Days Credit TermIndonesia
IndonesiaGPPS InjectionOffer ReceivedIDR15,000,000-16,000,0001,039-1,109Cash In AdvanceIndonesia
IndonesiaGPPS InjectionPurchasedIDR14,500,0001,005Cash In AdvanceIndonesia
IndonesiaGPPS InjectionSell IdeaIDR14,800,0001,025Cash In AdvanceIndonesia
IndonesiaGPPS InjectionSoldUSD950-Cash In AdvanceIndonesia
ThailandGPPS InjectionOffer ReceivedIDR16,600,000-17,600,0001,150-1,21990 Days Credit TermIndonesia
VietnamGPPS InjectionOffer GivenUSD870-910-Cash In AdvanceVietnam
IndonesiaHIPS InjectionOffer GivenIDR16,000,0001,10930 Days Credit TermIndonesia
IndonesiaHIPS InjectionOffer GivenIDR16,000,000-17,500,0001,109-1,213Cash In AdvanceIndonesia
IndonesiaHIPS InjectionOffer ReceivedIDR17,000,000-17,600,0001,178-1,21990 Days Credit TermIndonesia
IndonesiaHIPS InjectionOffer ReceivedIDR16,000,000-17,000,0001,109-1,178Cash In AdvanceIndonesia
IndonesiaHIPS InjectionPurchasedIDR15,500,0001,074Cash In AdvanceIndonesia
IndonesiaHIPS InjectionSell IdeaIDR15,800,0001,095Cash In AdvanceIndonesia
IndonesiaHIPS InjectionSoldUSD1,010-Cash In AdvanceIndonesia
SingaporeHIPS InjectionOffer ReceivedVND24,000,000937Cash In AdvanceVietnam
ThailandHIPS InjectionOffer ReceivedIDR17,600,0001,21990 Days Credit TermIndonesia

Range of import PS transactions in May on LC at sight, CIF Main Port basis

OriginProductTransaction TypeOffers (USD/ton)Delivery Country
Far East AsiaGPPS InjectionBuy Idea825-835Vietnam
Far East AsiaGPPS InjectionOffer Given860-870Vietnam
Far East AsiaGPPS InjectionOffer Received830-900Vietnam
Southeast AsiaGPPS InjectionOffer Received830Indonesia
Southeast AsiaGPPS InjectionOffer Received850-900Vietnam
Far East AsiaGPPS InjectionPurchased830-850Vietnam
Southeast AsiaGPPS InjectionPurchased830Vietnam
Far East AsiaGPPS InjectionSold850-860Vietnam
Far East AsiaHIPS InjectionOffer Given930-940Vietnam
Far East AsiaHIPS InjectionOffer Received930-1,000Vietnam
Southeast AsiaHIPS InjectionOffer Received940Vietnam
Far East AsiaHIPS InjectionPurchased940Vietnam
Far East AsiaHIPS InjectionSold900-940Vietnam

Range of export PS transaction in May on LC at sight, FOB Vietnam basis

OriginProductTransaction TypeOffers (USD/ton)
VietnamGPPS InjectionOffer Given840-850

Range of local/localized PS transactions in June on FD basis, all excluding VAT except in VND term includes 10% VAT

OriginProductTransaction TypeCurrencyOffers/tonEquivalent in USD/tonPayment TermDelivery Country
IndonesiaGPPS InjectionOffer GivenUSD980-1,070-Cash In AdvanceIndonesia
IndonesiaGPPS InjectionOffer GivenIDR14,000,000-15,700,000970-1,088Cash In AdvanceIndonesia
IndonesiaGPPS InjectionOffer GivenIDR15,000,0001,03930 Days Credit TermIndonesia
IndonesiaGPPS InjectionOffer ReceivedIDR14,000,000970Cash In AdvanceIndonesia
IndonesiaGPPS InjectionOffer ReceivedIDR15,000,000-15,700,0001,039-1,08890 Days Credit TermIndonesia
IndonesiaGPPS InjectionPurchasedIDR14,000,000-16,000,000970-1,10930 Days Credit TermIndonesia
IndonesiaGPPS InjectionPurchasedIDR14,900,0001,032Cash In AdvanceIndonesia
IndonesiaGPPS InjectionSoldUSD980-Cash In AdvanceIndonesia
ThailandGPPS InjectionOffer ReceivedIDR15,900,0001,10290 Days Credit TermIndonesia
ThailandGPPS InjectionOffer ReceivedTHB34,0001,087Cash In AdvanceThailand
TaiwanGPPS InjectionOffer GivenVND30,000,0001,171Cash In AdvanceVietnam
ThailandGPPS InjectionOffer GivenVND28,000,0001,093Cash In AdvanceVietnam
VietnamGPPS InjectionOffer GivenUSD910-950-Cash In AdvanceVietnam
VietnamGPPS InjectionSoldUSD920-950-Cash In AdvanceVietnam
IndonesiaHIPS InjectionOffer GivenUSD1,090-1,195-Cash In AdvanceIndonesia
IndonesiaHIPS InjectionOffer GivenIDR15,000,000-16,700,0001,039-1,157Cash In AdvanceIndonesia
IndonesiaHIPS InjectionOffer GivenIDR16,000,0001,10930 Days Credit TermIndonesia
IndonesiaHIPS InjectionOffer ReceivedIDR16,000,000-16,700,0001,109-1,15790 Days Credit TermIndonesia
IndonesiaHIPS InjectionPurchasedIDR15,900,0001,102Cash In AdvanceIndonesia
IndonesiaHIPS InjectionSoldUSD1,150-1,155-Cash In AdvanceIndonesia
MalaysiaHIPS InjectionOffer GivenUSD970-1,000-Cash In AdvanceMalaysia
TaiwanHIPS InjectionOffer GivenVND33,000,0001,288Cash In AdvanceVietnam
ThailandHIPS InjectionOffer GivenVND31,000,0001,210Cash In AdvanceVietnam
ThailandHIPS InjectionOffer ReceivedIDR16,700,0001,15790 Days Credit TermIndonesia

Range of import PS transaction in June on LC at sight, CIF Main Port basis

OriginProductTransaction TypeOffers (USD/ton)Delivery Country
Far East AsiaGPPS InjectionOffer Given920Indonesia
Far East AsiaGPPS InjectionOffer Given870-900Southeast Asia
Far East AsiaGPPS InjectionOffer Received865-970Vietnam
Southeast AsiaGPPS InjectionOffer Received980-1,000Vietnam
Southeast AsiaGPPS InjectionOffer Received980-1,000Indonesia
Southeast AsiaGPPS InjectionOffer Given900Southeast Asia
Far East AsiaHIPS InjectionOffer Given1,020Indonesia
Far East AsiaHIPS InjectionOffer Given970-1,000Southeast Asia
Far East AsiaHIPS InjectionOffer Received965-1,020Vietnam
Southeast AsiaHIPS InjectionOffer Given970-1,000Southeast Asia
Southeast AsiaHIPS InjectionOffer Received1,060Vietnam

Range of export PS transaction in June on LC at sight, FOB Vietnam basis

OriginProductTransaction TypeOffers (USD/ton)
VietnamGPPS InjectionOffer Given900-920

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

Published on July 9, 2020 6:37 PM (GMT+8)
Last Updated on July 9, 2020 6:37 PM (GMT+8)