- Local and import PP offers in the region captured on the same trend
- Producers in some Southeast Asian countries were facing supply issues
- Players foresee gloomy outlook for demand, particularly in Thailand
During June, SSESSMENTS.COM’s data showed that local and import offers within the Southeast Asia PP market were captured stable to firmer. In Malaysia, June delivery offers for PP Homopolymer and Copolymer grades from the local producer moved higher between MYR100-280/ton ($23-65/ton) compared to May. In the Philippines, local PP offers from the leading polyolefins producer on the week commencing June 8 increased between PHP1,000-2,000/ton ($20-40/ton) owing to firmer feedstock prices and limited allocation as the producer was able to divert a huge amount of cargoes to China in the previous month. Whereas in Thailand, offers for PP Homopolymer grades from the local producers were mostly captured on an uptrend during June, with a range of increase between THB500-2,000/ton ($16-64/ton) week over week. Most Thai producers claimed that the limited supply, especially for PP Homopolymers, was the major ground behind the upward price adjustments. In the first half of June, some Thai buyers were fine with the uptrend, but moving to the second half of the month, most buyers showed stiff resistance and the number of deals started to decrease taking into account the sufficient stocks on converters’ hands.
In the import market, a Thai producer offered PP Homo Raffia cargoes to the Southeast Asia market above $900/ton-level on the back of limited supply coupled with firmer feedstock prices. On the week starting June 1, Middle Eastern PP Homo Raffia offers surfaced in Myanmar with increments of between $15-20/ton on a weekly comparison. A week after, a Thai trader stated that four-digit offers surfaced in the region because suppliers wanted to test buyers’ acceptance level amidst tight supply. Moreover, in late June, SSESSMENTS.COM noted that July shipment offers for PP Homo Film from one of the Middle Eastern producers skyrocketed by $130/ton compared to June. Detailed information for Indonesia and Vietnam market is available in WeeklySSESSMENTS of the respective countries.
As reported to SSESSMENTS.COM, demand for PP resins in the Southeast Asia market was considered sluggish throughout June, despite the slight improvement in each country. Players commented that the weak demand for resins was mainly linked with abundant stocks on converters’ end as well as slow sales for their finished products. In Thailand, weak demand was also caused by buyers’ resistance toward high prices. However, at the end of June, demand in Thailand had slightly improved as supported by orders from converters that need to clear backlogs for sales since March or before the Coronavirus-related lockdown was imposed in the country. Whereas in the Philippines, the overall demand was sluggish, although some buyers have placed orders after Metro Manila as the centre of business, was under General Community Quarantine (GCQ) as of June 1. In Malaysia, PP demand started to show improvement during the week commencing June 15 following the healthy demand for converters’ end-products from the domestic and export market such as Australia. Some converters in the region stated that the overall end-product sales in June were lots better than in May.
On the supply side, some producers in the region were reported having low availability of PP grades on their end. One of them was a Thai PP producer that has limited allocation stemming from maintenance shutdown at the company’s plants, while another PP producer in Thailand had backlogs to clear. On the plant news, Thailand IRPC’s 225,000 tons/year PP line No. 3 was shut for maintenance on June 12 to June 26. Upon the completion of maintenance at PP line No. 3, the producer also underwent a maintenance shutdown at its 160,000 tons/year PP line No. 4 starting on June 29 and expected to be back on-stream on July 11.
Looking into July, the majority of Southeast Asian market players contacted by SSESSMENTS.COM believe that local PP prices will remain firm despite the unimproved demand in the region. Citing that limited availability of PP cargoes will continue to lend a hand. In terms of demand, players in Thailand opined that demand is going to be very slow as the market is still severely affected by Coronavirus outbreak; demand for both PP resins and end-products are predicted to drop around 50% from the current demand in July.
Range of local PP offers between June 1 to June 5 on FD basis, excluding VAT (except PHP term 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 Homo Film | Offer Received | MYR | 4,230-4,290 | 987-1,001 | 30 Days Credit Term | Malaysia |
| Thailand | PP Homo Film | Offer Received | THB | 32,000-33,000 | 1,034-1,066 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Offer Given | THB | 34,000 | 1,099 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Sold | THB | 29,500 | 953 | Cash In Advance | Thailand |
| Philippines | PP Homo Injection | Offer Received | PHP | 60,000 | 1,074 | Cash In Advance | Philippines |
| Thailand | PP Homo Injection | Offer Received | THB | 32,000-32,500 | 1,034-1,050 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Offer Given | THB | 33,000 | 1,066 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Sold | THB | 29,000 | 937 | Cash In Advance | Thailand |
| Malaysia | PP Homo Raffia | Price List | MYR | 4,080-4,130 | 952-963 | 30 Days Credit Term | Malaysia |
| Philippines | PP Homo Raffia | Offer Received | PHP | 60,000 | 1,074 | Cash In Advance | Philippines |
| Thailand | PP Homo Raffia | Offer Received | THB | 31,500-32,000 | 1,018-1,034 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Offer Given | THB | 33,000 | 1,066 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Sold | THB | 29,000 | 937 | Cash In Advance | Thailand |
Range of import PP offers between June 1 to June 5 on LC at sight, CIF Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Country |
|---|
| Middle East | PP Block Copolymer | Offer Received | 950 | Myanmar |
| Indian Subcontinent | PP Homo Film | Offer Received | 890 | Thailand |
| Middle East | PP Homo Raffia | Offer Received | 865-880 | Myanmar |
| Southeast Asia | PP Homo Raffia | Sell Idea | 900 | Southeast Asia |
Range of local PP offers between June 8 to June 12 on FD basis, excluding VAT (except PHP term 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 | 4,160-4,230 | 970-987 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Film | Price List | MYR | 4,230 | 987 | 30 Days Credit Term | Malaysia |
| Philippines | PP Homo Film | Purchased | USD | 1,000 | - | Cash In Advance | Philippines |
| Thailand | PP Homo Film | Offer Received | THB | 34,000 | 1,099 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Offer Given | THB | 35,000 | 1,131 | Cash In Advance | Thailand |
| Malaysia | PP Homo Injection | Price List | MYR | 4,030 | 940 | 30 Days Credit Term | Malaysia |
| Philippines | PP Homo Injection | Offer Received | PHP | 61,000 | 1,091 | Cash In Advance | Philippines |
| Thailand | PP Homo Injection | Offer Received | THB | 32,000-33,000 | 1,034-1,066 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Offer Given | THB | 34,000 | 1,099 | Cash In Advance | Thailand |
| Malaysia | PP Homo Raffia | Price List | MYR | 4,080-4,130 | 952-963 | 30 Days Credit Term | Malaysia |
| Philippines | PP Homo Raffia | Offer Received | PHP | 60,000-62,000 | 1,074-1,109 | 60 Days Credit Term | Philippines |
| Philippines | PP Homo Raffia | Offer Received | PHP | 61,000 | 1,091 | Cash In Advance | Philippines |
| Philippines | PP Homo Raffia | Purchased | USD | 950 | - | Cash In Advance | Philippines |
| Thailand | PP Homo Raffia | Offer Received | THB | 32,500-33,000 | 1,050-1,066 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Offer Given | THB | 34,000 | 1,099 | Cash In Advance | Thailand |
Range of local PP offers between June 15 to June 19 on FD basis, excluding VAT (except PHP term 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 | Price List | MYR | 4,160-4,320 | 970-1,008 | 30 Days Credit Term | Malaysia |
| Thailand | PP Homo Film | Offer Given | THB | 35,500-36,000 | 1,147-1,163 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Offer Received | THB | 34,500-35,000 | 1,115-1,131 | Cash In Advance | Thailand |
| Malaysia | PP Homo Injection | Offer Given | MYR | 4,030 | 940 | 30 Days Credit Term | Malaysia |
| Thailand | PP Homo Injection | Offer Given | THB | 30,500 | 985 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Offer Received | THB | 33,500 | 1,082 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Sold | THB | 30,500 | 985 | Cash In Advance | Thailand |
| Malaysia | PP Homo Raffia | Offer Given | MYR | 4,080-4,130 | 952-963 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Raffia | Sold | MYR | 4,080 | 952 | 30 Days Credit Term | Malaysia |
| Philippines | PP Homo Raffia | Offer Received | PHP | 60,000-62,000 | 1,074-1,109 | 60 Days Credit Term | Philippines |
| Thailand | PP Homo Raffia | Offer Given | THB | 34,500 | 1,115 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Offer Received | THB | 33,500 | 1,082 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Offer Received | THB | 33,500 | 1,082 | 30 Days Credit Term | Thailand |
| Thailand | PP Homo Raffia | Sold | THB | 30,500 | 985 | Cash In Advance | Thailand |
Range of import PP offers between June 15 to June 19 on LC at sight, CIF Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Country |
|---|
| Malaysia | PP Block Copolymer | Sold | 980-990 | Southeast Asia |
| Malaysia | PP Homo Raffia | Sold | 920 | Southeast Asia |
| Vietnam | PP Homo Raffia | Sold | 960 | Philippines |
Local PP offers between June 22 to June 26 on FD basis, excluding VAT (PHP term 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 | Price List | MYR | 4,160-4,320 | 970-1,008 | 30 Days Credit Term | Malaysia |
| Philippines | PP Homo Film | Offer Received | PHP | 62,000-63,000 | 1,109-1,127 | Cash In Advance | Philippines |
| Thailand | PP Homo Film | Offer Given | THB | 37,000 | 1,196 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Offer Received | THB | 36,000 | 1,163 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Offer Given | THB | 35,000-36,000 | 1,131-1,163 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Offer Received | THB | 35,000-35,500 | 1,131-1,147 | Cash In Advance | Thailand |
| Malaysia | PP Homo Raffia | Purchased | MYR | 4,300 | 1,003 | Cash In Advance | Malaysia |
| Philippines | PP Homo Raffia | Offer Received | PHP | 61,000 | 1,091 | Cash In Advance | Philippines |
| Thailand | PP Homo Raffia | Offer Given | THB | 35,000-36,000 | 1,131-1,163 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Offer Received | THB | 35,000-35,500 | 1,131-1,147 | Cash In Advance | Thailand |
Range of import PP offers between June 22 to June 26 on LC at sight, CIF Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Country |
|---|
| Southeast Asia | PP Block Copolymer | Price List | 1,000-1,060 | Malaysia |
| Middle East | PP Homo Film | Offer Received | 990 | Philippines |
| Southeast Asia | PP Homo Film | Offer Received | 1,020 | Philippines |
| Southeast Asia | PP Homo Injection | Price List | 960 | Malaysia |
| Southeast Asia | PP Homo Raffia | Sold* | 980 | Philippines |
Description: *Offers for August shipment
Local PP offers between June 29 to June 30 on FD basis, excluding VAT (PHP term 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 Given | MYR | 4,440 | 1,036 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Block Copolymer | Price List | MYR | 4,440-4,510 | 1,036 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Film | Price List | MYR | 4,550 | 1,061 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Injection | Offer Given | MYR | 4,350 | 1,015 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Injection | Price List | MYR | 4,350 | 1,015 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Raffia | Offer Given | MYR | 4,400-4,450 | 1,027-1,038 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Raffia | Price List | MYR | 4,400-4,450 | 1,027-1,038 | 30 Days Credit Term | Malaysia |
| Philippines | PP Homo Raffia | Offer Received | PHP | 64,000 | 1,145 | Cash In Advance | Philippines |
| Thailand | PP Homo Raffia | Offer Given | THB | 35,000-36,000 | 1,131-1,163 | Cash In Advance | Thailand |
| Malaysia | PP Random Copolymer Extrusion | Price List | MYR | 4,820-4,880 | 1,142-1,139 | 30 Days Credit Term | Malaysia |
Range of import PP offers between June 29 to June 30 on LC at sight, CIF Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Country |
|---|
| Middle East | PP Homo Injection | Offer Received | 1,010 | Southeast Asia |
Tags: Asia Pacific,English,Monthly,PP,SEA
Published on June 30, 2020 5:30 PM (GMT+8)
Last Updated on June 30, 2020 5:33 PM (GMT+8)
