quarterlyssessments-q2-2020-sea-ps-prices

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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

Origin	Product	Transaction Type	Currency	Offers/ton	Equivalent in USD/ton	Payment Term	Delivery Country
Indonesia	GPPS Injection	Offer Given	IDR	17,500,000	1,213	30 Days Credit Term	Indonesia
Indonesia	GPPS Injection	Offer Given	IDR	15,800,000-17,000,000	1,095-1,178	Cash In Advance	Indonesia
Indonesia	GPPS Injection	Offer Given	USD	1,040-1,080	-	Cash In Advance	Indonesia
Indonesia	GPPS Injection	Offer Received	IDR	18,300,000	1,268	60 Days Credit Term	Indonesia
Indonesia	GPPS Injection	Offer Received	IDR	17,000,000	1,178	90 Days Credit Term	Indonesia
Indonesia	GPPS Injection	Offer Received	IDR	17,000,000	1,178	Cash In Advance	Indonesia
Indonesia	GPPS Injection	Purchased	IDR	16,800,000	1,164	Cash In Advance	Indonesia
Indonesia	GPPS Injection	Sell Idea	IDR	17,500,000	1,213	30 Days Credit Term	Indonesia
Indonesia	GPPS Injection	Sell Idea	USD	950-970	-	Cash In Advance	Indonesia
Indonesia	GPPS Injection	Sold	IDR	17,500,000	1,213	Cash In Advance	Indonesia
Thailand	GPPS Injection	Offer Received	IDR	18,000,000	1,247	60 Days Credit Term	Indonesia
Thailand	GPPS Injection	Offer Received	IDR	17,000,000	1,178	90 Days Credit Term	Indonesia
Vietnam	GPPS Injection	Offer Given	USD	880-1,000	-	Cash In Advance	Vietnam
Vietnam	GPPS Injection	Sold	USD	880	-	Cash In Advance	Vietnam
Indonesia	HIPS Injection	Offer Given	IDR	18,500,000	1,282	30 Days Credit Term	Indonesia
Indonesia	HIPS Injection	Offer Given	IDR	16,800,000-18,500,000	1,164-1,282	Cash In Advance	Indonesia
Indonesia	HIPS Injection	Offer Given	USD	1,100-1,140	-	Cash In Advance	Indonesia
Indonesia	HIPS Injection	Offer Received	IDR	19,300,000	1,337	60 Days Credit Term	Indonesia
Indonesia	HIPS Injection	Offer Received	IDR	18,000,000	1,247	90 Days Credit Term	Indonesia
Indonesia	HIPS Injection	Offer Received	IDR	18,000,000	1,247	Cash In Advance	Indonesia
Indonesia	HIPS Injection	Sell Idea	IDR	18,500,000	1,282	30 Days Credit Term	Indonesia
Indonesia	HIPS Injection	Sell Idea	USD	1,020-1,040	-	Cash In Advance	Indonesia
Thailand	HIPS Injection	Offer Received	IDR	19,550,000	1,355	60 Days Credit Term	Indonesia
Thailand	HIPS Injection	Offer Received	IDR	18,000,000	1,247	90 Days Credit Term	Indonesia

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

Origin	Product	Transaction Type	Offers (USD/ton)	Delivery Country
Singapore	GPPS Injection	Offer Received	920-970	Indonesia
South Korea	GPPS Injection	Offer Given	860	Indonesia
South Korea	GPPS Injection	Sell Idea	830	Indonesia
Vietnam	GPPS Injection	Sold	860	Myanmar
Vietnam	GPPS Injection	Bid Received	850	Southeast Asia
Vietnam	GPPS Injection	Offer Given	920	Southeast Asia
Vietnam	GPPS Injection	Sold	860-870	Southeast Asia
Vietnam	GPPS Injection	Sold	860	Thailand
Vietnam	GPPS Injection	Purchased	820	Vietnam
South Korea	HIPS Injection	Offer Given	1,000	Indonesia

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

Origin	Product	Transaction Type	Offers (USD/ton)
Vietnam	GPPS Injection	Offer Given	830-900

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

Origin	Product	Transaction Type	Currency	Offers/ton	Equivalent in USD/ton	Payment Term	Delivery Country
Indonesia	GPPS Injection	Offer Given	IDR	15,000,000	1,039	30 Days Credit Term	Indonesia
Indonesia	GPPS Injection	Offer Given	IDR	15,000,000-16,500,000	1,039-1,143	Cash In Advance	Indonesia
Indonesia	GPPS Injection	Offer Received	IDR	16,000,000-16,600,000	1,109-1,150	90 Days Credit Term	Indonesia
Indonesia	GPPS Injection	Offer Received	IDR	15,000,000-16,000,000	1,039-1,109	Cash In Advance	Indonesia
Indonesia	GPPS Injection	Purchased	IDR	14,500,000	1,005	Cash In Advance	Indonesia
Indonesia	GPPS Injection	Sell Idea	IDR	14,800,000	1,025	Cash In Advance	Indonesia
Indonesia	GPPS Injection	Sold	USD	950	-	Cash In Advance	Indonesia
Thailand	GPPS Injection	Offer Received	IDR	16,600,000-17,600,000	1,150-1,219	90 Days Credit Term	Indonesia
Vietnam	GPPS Injection	Offer Given	USD	870-910	-	Cash In Advance	Vietnam
Indonesia	HIPS Injection	Offer Given	IDR	16,000,000	1,109	30 Days Credit Term	Indonesia
Indonesia	HIPS Injection	Offer Given	IDR	16,000,000-17,500,000	1,109-1,213	Cash In Advance	Indonesia
Indonesia	HIPS Injection	Offer Received	IDR	17,000,000-17,600,000	1,178-1,219	90 Days Credit Term	Indonesia
Indonesia	HIPS Injection	Offer Received	IDR	16,000,000-17,000,000	1,109-1,178	Cash In Advance	Indonesia
Indonesia	HIPS Injection	Purchased	IDR	15,500,000	1,074	Cash In Advance	Indonesia
Indonesia	HIPS Injection	Sell Idea	IDR	15,800,000	1,095	Cash In Advance	Indonesia
Indonesia	HIPS Injection	Sold	USD	1,010	-	Cash In Advance	Indonesia
Singapore	HIPS Injection	Offer Received	VND	24,000,000	937	Cash In Advance	Vietnam
Thailand	HIPS Injection	Offer Received	IDR	17,600,000	1,219	90 Days Credit Term	Indonesia

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

Origin	Product	Transaction Type	Offers (USD/ton)	Delivery Country
Far East Asia	GPPS Injection	Buy Idea	825-835	Vietnam
Far East Asia	GPPS Injection	Offer Given	860-870	Vietnam
Far East Asia	GPPS Injection	Offer Received	830-900	Vietnam
Southeast Asia	GPPS Injection	Offer Received	830	Indonesia
Southeast Asia	GPPS Injection	Offer Received	850-900	Vietnam
Far East Asia	GPPS Injection	Purchased	830-850	Vietnam
Southeast Asia	GPPS Injection	Purchased	830	Vietnam
Far East Asia	GPPS Injection	Sold	850-860	Vietnam
Far East Asia	HIPS Injection	Offer Given	930-940	Vietnam
Far East Asia	HIPS Injection	Offer Received	930-1,000	Vietnam
Southeast Asia	HIPS Injection	Offer Received	940	Vietnam
Far East Asia	HIPS Injection	Purchased	940	Vietnam
Far East Asia	HIPS Injection	Sold	900-940	Vietnam

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

Origin	Product	Transaction Type	Offers (USD/ton)
Vietnam	GPPS Injection	Offer Given	840-850

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

Origin	Product	Transaction Type	Currency	Offers/ton	Equivalent in USD/ton	Payment Term	Delivery Country
Indonesia	GPPS Injection	Offer Given	USD	980-1,070	-	Cash In Advance	Indonesia
Indonesia	GPPS Injection	Offer Given	IDR	14,000,000-15,700,000	970-1,088	Cash In Advance	Indonesia
Indonesia	GPPS Injection	Offer Given	IDR	15,000,000	1,039	30 Days Credit Term	Indonesia
Indonesia	GPPS Injection	Offer Received	IDR	14,000,000	970	Cash In Advance	Indonesia
Indonesia	GPPS Injection	Offer Received	IDR	15,000,000-15,700,000	1,039-1,088	90 Days Credit Term	Indonesia
Indonesia	GPPS Injection	Purchased	IDR	14,000,000-16,000,000	970-1,109	30 Days Credit Term	Indonesia
Indonesia	GPPS Injection	Purchased	IDR	14,900,000	1,032	Cash In Advance	Indonesia
Indonesia	GPPS Injection	Sold	USD	980	-	Cash In Advance	Indonesia
Thailand	GPPS Injection	Offer Received	IDR	15,900,000	1,102	90 Days Credit Term	Indonesia
Thailand	GPPS Injection	Offer Received	THB	34,000	1,087	Cash In Advance	Thailand
Taiwan	GPPS Injection	Offer Given	VND	30,000,000	1,171	Cash In Advance	Vietnam
Thailand	GPPS Injection	Offer Given	VND	28,000,000	1,093	Cash In Advance	Vietnam
Vietnam	GPPS Injection	Offer Given	USD	910-950	-	Cash In Advance	Vietnam
Vietnam	GPPS Injection	Sold	USD	920-950	-	Cash In Advance	Vietnam
Indonesia	HIPS Injection	Offer Given	USD	1,090-1,195	-	Cash In Advance	Indonesia
Indonesia	HIPS Injection	Offer Given	IDR	15,000,000-16,700,000	1,039-1,157	Cash In Advance	Indonesia
Indonesia	HIPS Injection	Offer Given	IDR	16,000,000	1,109	30 Days Credit Term	Indonesia
Indonesia	HIPS Injection	Offer Received	IDR	16,000,000-16,700,000	1,109-1,157	90 Days Credit Term	Indonesia
Indonesia	HIPS Injection	Purchased	IDR	15,900,000	1,102	Cash In Advance	Indonesia
Indonesia	HIPS Injection	Sold	USD	1,150-1,155	-	Cash In Advance	Indonesia
Malaysia	HIPS Injection	Offer Given	USD	970-1,000	-	Cash In Advance	Malaysia
Taiwan	HIPS Injection	Offer Given	VND	33,000,000	1,288	Cash In Advance	Vietnam
Thailand	HIPS Injection	Offer Given	VND	31,000,000	1,210	Cash In Advance	Vietnam
Thailand	HIPS Injection	Offer Received	IDR	16,700,000	1,157	90 Days Credit Term	Indonesia

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

Origin	Product	Transaction Type	Offers (USD/ton)	Delivery Country
Far East Asia	GPPS Injection	Offer Given	920	Indonesia
Far East Asia	GPPS Injection	Offer Given	870-900	Southeast Asia
Far East Asia	GPPS Injection	Offer Received	865-970	Vietnam
Southeast Asia	GPPS Injection	Offer Received	980-1,000	Vietnam
Southeast Asia	GPPS Injection	Offer Received	980-1,000	Indonesia
Southeast Asia	GPPS Injection	Offer Given	900	Southeast Asia
Far East Asia	HIPS Injection	Offer Given	1,020	Indonesia
Far East Asia	HIPS Injection	Offer Given	970-1,000	Southeast Asia
Far East Asia	HIPS Injection	Offer Received	965-1,020	Vietnam
Southeast Asia	HIPS Injection	Offer Given	970-1,000	Southeast Asia
Southeast Asia	HIPS Injection	Offer Received	1,060	Vietnam

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

Origin	Product	Transaction Type	Offers (USD/ton)
Vietnam	GPPS Injection	Offer Given	900-920

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)

QuarterlySSESSMENTS: Q2 2020 SEA PS Prices

Author: SSESSMENTS

QuarterlySSESSMENTS: Q2 2020 SEA PS Prices

Author: SSESSMENTS

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