- Local offers were stable to soft during March
- Demand was dull as sentiment eroded amid Corona pandemic
- Local, import offers expected to dip further if Coronavirus outbreak unresolved
According to data gathered by SSESSMENTS.COM’s team, local offers in the Southeast Asia PP market were stable to soft during March. In Malaysia, March delivery offers from the local producer edged down by MYR100/ton ($23/ton) for PP Homopolymer and Copolymer grades, except for PP Homo Injection dropped by MYR150/ton ($34.5/ton) from February. In Thailand, PP Homopolymer offers from the local producers recorded a total reduction of between THB2,500-3,500/ton ($76-106/ton). Meanwhile, local offers in the Philippines market were generally stable as there were no new offers from the leading polyolefins producer during the month due to the needs to clear some backlogs. As SSESSMENTS.COM noted, one of the local PP producers in Thailand skipped offering to the market on the week commencing March 9, citing that the company needed to monitor crude oil price movement further following the biggest drop by more than 30% since the 1991 Gulf War. Detailed information for Indonesia and Vietnam market is available in MonthlySSESSMENTS of the respective countries.
In the import market, buyers in Myanmar voiced out their buy idea for Middle Eastern cargoes at $900/ton on LC at sight, CIF Myanmar Main Port basis at the beginning of March. At that time, such a level was deemed too low by the suppliers considering higher freight cost compared to other Southeast Asian countries. For India origin cargoes, SSESSMENTS.COM data showed that deals for PP Homo Raffia broke below $900/ton-level by the week commencing March 23, concluded at $845/ton on LC at sight, CIF Southeast Asia Main Port basis. For PP Homo Raffia from China, some suppliers increased offers by $10/ton on the week commencing March 2 due to uptrend in China domestic market. However, the firm offers did not receive a good response from Southeast Asian buyers. As such, offers for the cargoes were adjusted down by $20/ton on the week commencing March 16. By March 31, PP Homo Raffia cargoes of China origin were captured below $800-threshold and as the lowest offers to Southeast Asia market, stood at $780/ton on LC at sight, CIF Vietnam Main Port basis.
Demand for PP resins in the region reportedly dull throughout March. Market sentiment eroded as confirmed cases of Coronavirus in several countries within the region continued to climb. Converters kept procurements on a hand-to-mouth basis as sales for finished products were slowing down, SSESSMENTS.COM was told. Additionally, most factories in Malaysia and the Philippines were forced to shut due to lockdown imposed by the local government as a measure to curb the spread of the virus. In the logistics sector, cargo delivery in Malaysia was disrupted as logistic lines were not operating following the Movement Control Order announced by the government on March 18. Likewise, no shipment was allowed from Vietnam to Cambodia as the Vietnamese government closed borders between two countries for two weeks starting from March 19.
On the supply front, Philippines JG Summit Petrochemical had no offers by the third week of March, but local traders ensured supply to customers remained normal via imports. Similarly, Thai SCG’s 400,000 tons/year PP plant was running at a reduced rate by the week commencing March 9, but it did not affect supply. Meanwhile, Thailand’s HMC Polymers Co Ltd has resumed production at its PP line no.3 with a capacity of 360,000 tons/year in late March following maintenance for screw replacement since February 26, SSESSMENTS.COM noted.
Entering April, the majority of market players opined that local and import PP offers would continue to dip amid grave concern over Coronavirus. Market players in Thailand commented that local PP offers might break THB25,000/ton-threshold level as demand will remain sluggish amid pandemic. Meanwhile, some others opined that market outlook would be clearer once the lockdown ends, as stated to SSESSMENTS.COM.
Transactions for local PP between March 2 to March 6 on FD basis, excluding VAT (except in 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 | Offer Received | MYR | 4,700 | 1,076 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Block Copolymer | Purchased | MYR | 4,700 | 1,076 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Film | Offer Given | MYR | 4,750 | 1,088 | 30 Days Credit Term | Malaysia |
| Thailand | PP Homo Film | Offer Given | THB | 33,000-34,000 | 998-1,029 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Offer Received | THB | 32,500-32,750 | 983-991 | Cash In Advance | Thailand |
| Malaysia | PP Homo Injection | Offer Given | MYR | 4,550 | 1,042 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Injection | Sold | MYR | 4,550 | 1,042 | 30 Days Credit Term | Malaysia |
| Thailand | PP Homo Injection | Offer Given | THB | 32,500-33,500 | 983-1,013 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Offer Received | THB | 32,000-32,250 | 968-976 | Cash In Advance | Thailand |
| Malaysia | PP Homo Raffia | Offer Given | MYR | 4,600 | 1,053 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Raffia | Offer Received | MYR | 4,550 | 1,042 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Raffia | Purchased | MYR | 4,540 | 1,039 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Raffia | Sold | MYR | 4,600 | 1,053 | 30 Days Credit Term | Malaysia |
| Philippines | PP Homo Raffia | Offer Given | PHP | 67,000 | 1,176 | Cash In Advance | Philippines |
| Thailand | PP Homo Raffia | Offer Given | THB | 32,500-33,500 | 983-1,013 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Offer Received | THB | 32,000-32,250 | 968-976 | Cash In Advance | Thailand |
Transactions for import PP between March 2 to March 6 on LC at sight, CIF Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Country |
|---|
| Southeast Asia | PP Block Copolymer | Offer Received | 1,050 | Southeast Asia |
| Middle East | PP Homo Film | Offer Given | 950-960 | Malaysia |
| Middle East | PP Homo Film | Buy Idea | 930 | Malaysia |
| China | PP Homo Raffia | Offer Given | 940 | Philippines |
| China | PP Homo Raffia | Offer Given | 940 | Southeast Asia |
| Middle East | PP Homo Raffia | Offer Received | 950 | Myanmar |
| Middle East | PP Homo Raffia | Buy Idea | 900 | Myanmar |
| Southeast Asia | PP Homo Raffia | Sold | 960 | Philippines |
Transactions for local PP between March 9 to March 13 on FD basis, excluding VAT (except in 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 Given | MYR | 4,550 | 1,042 | 30 Days Credit Term | Malaysia |
| Thailand | PP Homo Film | Offer Given | THB | 31,500-33,500 | 953-1,013 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Purchased | THB | 32,000 | 968 | Cash In Advance | Thailand |
| Malaysia | PP Homo Injection | Offer Given | MYR | 4,550 | 1,042 | 30 Days Credit Term | Malaysia |
| Thailand | PP Homo Injection | Offer Given | THB | 31,500-33,000 | 953-998 | Cash In Advance | Thailand |
| Malaysia | PP Homo Raffia | Offer Given | MYR | 4,600 | 1,053 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Raffia | Purchased | MYR | 4,300 | 985 | Cash In Advance | Malaysia |
| Philippines | PP Homo Raffia | Offer Given | PHP | 67,000 | 1,176 | Cash In Advance | Philippines |
| Thailand | PP Homo Raffia | Offer Given | THB | 31,000-33,000 | 938-998 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Offer Received | THB | 33,500 | 1,013 | Cash In Advance | Thailand |
Transactions for import PP between March 9 to March 13 on LC at sight, CIF Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Country |
|---|
| Indian Subcontinent | PP Homo Film | Sold | 960 | Myanmar |
| Southeast Asia | PP Homo Injection | Sold | 950 | Philippines |
| China | PP Homo Raffia | Offer Given | 930 | Philippines |
| Indian Subcontinent | PP Homo Raffia | Sold | 930 | Myanmar |
| Southeast Asia | PP Homo Raffia | Offer Received | 930 | Thailand |
Transactions for local PP between March 16 to March 20 on FD basis, excluding VAT (except in 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 Given | MYR | 4,550 | 1,042 | 30 Days Credit Term | Malaysia |
| Thailand | PP Homo Film | Offer Given | THB | 31,000-32,000 | 938-968 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Offer Received | THB | 31,250 | 945 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Offer Given | THB | 30,500-31,500 | 923-953 | Cash In Advance | Thailand |
| Malaysia | PP Homo Raffia | Offer Given | MYR | 4,600 | 1,053 | Cash In Advance | Malaysia |
| Philippines | PP Homo Raffia | Offer Given | PHP | 67,000 | 1,176 | Cash In Advance | Philippines |
| Thailand | PP Homo Raffia | Offer Given | THB | 30,500-31,500 | 923-953 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Offer Received | THB | 30,750 | 930 | Cash In Advance | Thailand |
Transactions for import PP between March 16 to March 20 on LC at sight, CIF Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Country |
|---|
| China | PP Homo Raffia | Offer Given | 910 | Philippines |
Transactions for local PP between March 23 to March 27 on FD basis, excluding VAT (except in 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 Given | MYR | 4,550 | 1,042 | 30 Days Credit Term | Malaysia |
| Thailand | PP Homo Film | Offer Given | THB | 30,500-31,000 | 923-938 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Sold | THB | 31,000 | 938 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Offer Given | THB | 30,000-30,500 | 908-923 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Sold | THB | 30,500 | 923 | Cash In Advance | Thailand |
| Malaysia | PP Homo Raffia | Offer Given | MYR | 4,600 | 1,053 | Cash In Advance | Malaysia |
| Philippines | PP Homo Raffia | Offer Given | PHP | 67,000 | 1,176 | Cash In Advance | Philippines |
| Thailand | PP Homo Raffia | Offer Given | THB | 30,000-30,500 | 908-923 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Sold | THB | 30,500 | 923 | Cash In Advance | Thailand |
Transactions for import PP between March 23 to March 27 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 |
| Indian Subcontinent | PP Homo Raffia | Offer Given | 845 | Southeast Asia |
| Indian Subcontinent | PP Homo Raffia | Sold | 845 | Southeast Asia |
| Southeast Asia | PP Homo Raffia | Offer Given | 850 | Philippines |
Transactions for local PP between March 30 to March 31 on FD basis, excluding VAT in all terms
| Origin | Product | Transaction Type | Currency | Offers/ton | Equivalent in USD/ton | Delivery Country |
|---|
| Thailand | PP Homo Film | Offer Given | THB | 30,000 | 908 | Thailand |
| Thailand | PP Homo Film | Sold | THB | 29,500 | 892 | Thailand |
| Thailand | PP Homo Injection | Offer Given | THB | 29,500 | 892 | Thailand |
| Thailand | PP Homo Injection | Sold | THB | 29,000 | 877 | Thailand |
| Thailand | PP Homo Raffia | Offer Given | THB | 29,500 | 892 | Thailand |
| Thailand | PP Homo Raffia | Sold | THB | 29,000 | 877 | Thailand |
Transactions for import PP between March 30 to March 31 on LC at sight, CIF Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Country |
|---|
| Middle East | PP Random Copolymer Injection | Offer Received | 900 | Thailand |
| Middle East | PP Random Copolymer Injection | Purchased | 900 | Thailand |
Tags: Asia Pacific,English,Monthly,PP,SEA
Published on April 3, 2020 2:00 PM (GMT+8)
Last Updated on April 3, 2020 2:15 PM (GMT+8)
