Southeast Asian PS Market Displayed Different Moods This Week
- Some adjustments captured for local and import PS prices
- Demand recorded low in Indonesia, while Vietnam having normal demand
- Both pricing and demand outlook depends on feedstock price and market behaviour
Countries in the Southeast Asia market responded differently to motion in PS prices this week. In the local market, an Indonesian PS producer informed deals for GPPS Injection and HIPS Injection at $1,000/ton and $1,080/ton, respectively. Via traders, offers for local GPPS and HIPS cargoes decreased by IDR600,000/ton ($40/ton). In Vietnam, a local producer revealed that the company maintained a stable offer level for GPPS Injection to both the local and export market. From Vietnamese traders, SSESSMENTS.COM received information that their side decided to keep prices stable for localized Taiwanese GPPS Injection and HIPS Injection. All on a weekly comparison. Meanwhile, a Malaysian PS producer revealed that the company no longer has offers for both July and August shipment. From imports, a Taiwanese PS producer lowered offers for GPPS Injection to Vietnam market by $10/ton from last week, while another Taiwanese producer kept August shipment offers to Malaysia stable from July shipment. Likewise, an Indonesian trader maintained stable prices from last week for South Korean GPPS Injection and HIPS Injection at $920/ton and $1,020/ton, respectively, but no bids received so far. In contrast, a Vietnamese producer reported on concluding deals with Indonesian customers for GPPS Injection at $920-935/ton.
Market players in Indonesia told SSESSMENTS.COM that demand remains sluggish. A trader quoted from a customer who told the company skip procurement citing low demand for finished products. Meanwhile, the Vietnamese market remains in good conditions with deals still concluded amid most Vietnamese players still holding sufficient inventory. One of the Vietnamese converters pointed out that their company continue produces dozens of types of end-product for a variety of different sectors which made demand rarely affected.
For PS pricing outlook, Indonesian producer shared their calculation to SSESSMENTS.COM that August shipment offers may up between $20-30/ton from July shipment since SM prices up to $670-680/ton this month. The producer also considers factors like currency exchange rate and Indonesian GDP in Q2 2020 which impacted market behaviour. Meanwhile, there is some good expectation regarding demand. The Malaysian distributor mentioned that rumour has it that more China companies in long-term will transfer their projects to factories in Malaysia which can increase demand for PS cargoes going forward.
Local/localized PS offers on cash, FD basis, excluding VAT in all terms (except in VND term includes 10% VAT)
| Origin | Product | Transaction Type | Currency | Offers/ton | Equivalent in USD/ton | Delivery Country |
|---|
| Indonesia | GPPS Injection | Offer Given | IDR | 14,500,000-15,200,000 | 988-1,036 | Indonesia |
| Indonesia | GPPS Injection | Sold | USD | 1,000 | - | Indonesia |
| Taiwan | GPPS Injection | Offer Given | VND | 28,500,000 | 1,115 | Vietnam |
| Vietnam | GPPS Injection | Sold | USD | 950-960 | - | Vietnam |
| Indonesia | HIPS Injection | Offer Given | IDR | 15,500,000-16,200,000 | 1,057-1,104 | Indonesia |
| Indonesia | HIPS Injection | Sold | USD | 1,080 | - | Indonesia |
| Taiwan | HIPS Injection | Offer Given | VND | 30,000,000-30,500,000 | 1,173-1,193 | Vietnam |
Import PS offers on LC at sight, CIF/CFR Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Term | Delivery Country |
|---|
| South Korea | GPPS Injection | Offer Given* | 920 | CIF | Indonesia |
| Taiwan | GPPS Injection | Offer Given | 930-950 | CIF | Vietnam |
| Thailand | GPPS Injection | Offer Received* | 980 | CFR | Vietnam |
| Thailand | GPPS Injection | Offer Received | 980 | CIF | Vietnam |
| Vietnam | GPPS Injection | Sold | 920-935 | CIF | Indonesia |
| South Korea | HIPS Injection | Offer Given* | 1,020 | CIF | Indonesia |
| Taiwan | HIPS Injection | Offer Given | 1,020-1,030 | CIF | Vietnam |
| Thailand | HIPS Injection | Offer Received* | 1,060 | CFR | Vietnam |
| Thailand | HIPS Injection | Offer Received | 1,060 | CIF | Vietnam |
Description: *August shipment offers
Export PS offers on LC at sight, FOB Vietnam basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Vietnam | GPPS Injection | Offer Given* | 920 |
Description: *August shipment offers
Tags: Asia Pacific,English,Freemium,SEA,Styrenics,Weekly
Published on July 17, 2020 2:38 PM (GMT+8)
Last Updated on October 1, 2020 2:29 PM (GMT+8)
