- Local and import PP offers in the Southeast Asia market mostly moving on the same trend
- Thailand’s IRPC to shut PP plants for maintenance purposes starting from June 12
- Players doubted that the current PP price trend will sustain
According to the data collected by SSESSMENTS.COM’s team, local PP offers in the Southeast Asia PP market were mostly moving on the same trend week over week throughout May. In Malaysia, May delivery offers for PP Homopolymer grades from the local producer remained stable compared to April, while for PP Copolymer grades were down by MYR250-260/ton ($58-60/ton) compared to the same period. On the week commencing May 4, some deals were closed at MYR3,650/ton ($844/ton) on cash, FD Malaysia basis and excluding 6% SST, or MYR100/ton ($23/ton) lower than the initial offer level. In Thailand, offers for PP Homopolymer grades from the local producers were mostly captured on an uptrend during May, with a range of increase of between THB500-1,000/ton ($16-31/ton) week over week. The price increment in Thailand was made due to the absence of sales and inventory pressure in the first half of the month and supply shortage from the producers’ end during the second half. Despite the upward adjustment, some buyers were still placing bids at THB500-1,000/ton ($16-31/ton) lower from the initial offer levels. Detailed information for Indonesia and Vietnam market is available in MonthlySSESSMENTS of the respective countries.
In the import market, SSESSMENTS.COM noted that June shipment offers for PP Homopolymer grades from a Malaysian polyolefins producer to the Philippines recorded at $20/ton higher on the monthly comparison. The increment was in accordance with Philippines traders’ opinion, which stated that there would be no longer low import PP offers to the country as prices were on an uptrend. Owing to the upward trend in prices as well, most buyers in Myanmar decided to delay the procurement activities. As noted, import offers for Saudi PP Homo Raffia to Myanmar surged between $30-40/ton compared to the offers available in late April.
In the first half of May, the overall demand for PP resins within the Southeast Asia market were dull on the back of the sluggish sales for converters’ end-products. However, operating rate at the converters in the Philippines and Malaysia has started to increase as the government in each country has eased the lockdown regulation on the week starting May 4. Particularly in Malaysia, some players stated that PP demand was improving since the beginning of the month as some converters needed to replenish their stocks since they just resumed production at the time. In the final week of the month, SSESSMENTS.COM was told that market activities in Southeast Asia were back to the hollow state amid Eid Al-Fitr holiday. Market players in Malaysia halted trading activities as the government set Eid holidays during the first two days of the week, while the Philippines market took a break on Monday, May 25. From Thailand, suppliers reported that customers were showing resistance towards the latest upward price adjustments as most had placed orders beforehand.
On the production sector, a source with knowledge of matter stated that Thailand’s Integrated Refinery Petrochemical Complex (IRPC) has planned to conduct maintenance shutdown at the company’s PP line no. 3 and 4 in the middle of June. Further added to SSESSMENTS.COM, the company will likely undergo the maintenance at its no. 3 PP line for 15 days starting from June 12 and followed by the no. 4 PP line for 30 days. Located in Rayong Province, Thailand, PP line no. 3 and no. 4 have a production capacity of 225,000 tons/year and 160,000 tons/year, respectively.
Looking into June, the majority of market players in Southeast Asia, especially in the Thailand market, believe that the pricing outlook for PP would not be bright in the near term as orders for the end products continue to be affected by the Coronavirus pandemic. As such, most Thai producers opined to SSESSMENTS.COM that the sustainability of the current uptrend would not be long-lived and PP prices might eventually go down again in the near term.
Click below to view related stories and content on SEA PP:
WeeklySSESSMENTS: SEA PP Prices Week Starting May 4
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WeeklySSESSMENTS: SEA PP Prices Week Starting May 25
Range of local/localized PP offers between May 1 to May 8 on FD basis and excluding VAT (except in PHP 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 Homo Film | Offer Given | MYR | 3,950 | 914 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Film | Price List | MYR | 3,950 | 914 | 30 Days Credit Term | Malaysia |
| Thailand | PP Homo Film | Buy Idea | THB | 26,500 | 835 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Offer Given | THB | 28,500-29,000 | 898-914 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Offer Received | THB | 28,500 | 898 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Sell Idea | THB | 27,500-28,000 | 866-882 | Cash In Advance | Thailand |
| Malaysia | PP Homo Injection | Price List | MYR | 3,750 | 867 | 30 Days Credit Term | Malaysia |
| Southeast Asia | PP Homo Injection | Offer Given | PHP | 62,000-65,000 | 1,097-1,150 | Cash In Advance | Philippines |
| Thailand | PP Homo Injection | Offer Given | THB | 27,250-28,500 | 858-898 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Offer Received | THB | 28,000 | 882 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Sell Idea | THB | 27,000-27,500 | 850-866 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Sell Idea | THB | 27,500 | 866 | Cash In Advance | Thailand |
| Malaysia | PP Homo Raffia | Offer Received | MYR | 3,750 | 867 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Raffia | Purchased | MYR | 3,650 | 844 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Raffia | Price List | MYR | 3,800-3,850 | 879-890 | 30 Days Credit Term | Malaysia |
| Philippines | PP Homo Raffia | Offer Given | PHP | 67,000 | 1,185 | Cash In Advance | Philippines |
| Southeast Asia | PP Homo Raffia | Offer Given | PHP | 62,000-65,000 | 1,097-1,150 | Cash In Advance | Philippines |
| Thailand | PP Homo Raffia | Buy Idea | THB | 26,000 | 819 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Offer Given | THB | 27,250-28,500 | 858-898 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Offer Received | THB | 28,000 | 882 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Sell Idea | THB | 27,000-27,500 | 850-866 | Cash In Advance | Thailand |
Range of import PP offers between May 1 to May 8 on LC at sight, CIF Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Country |
|---|
| Middle East | PP Homo Film | Offer Received | 890 | Philippines |
| Middle East | PP Homo Film | Price List | 910 | Philippines |
| Middle East | PP Homo Injection | Price List | 910 | Philippines |
| Middle East | PP Homo Raffia | Price List | 880 | Philippines |
| Middle East | PP Random Copolymer Injection | Price List | 1,020 | Philippines |
Range of local PP offers between May 11 to May 15 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 | Price List | MYR | 3,950 | 914 | 30 Days Credit Term | Malaysia |
| Thailand | PP Homo Film | Bid Received | THB | 28,000 | 882 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Offer Given | THB | 28,500-29,000 | 898-914 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Offer Received | THB | 29,000 | 914 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Purchased | THB | 28,250 | 890 | Cash In Advance | Thailand |
| Malaysia | PP Homo Injection | Price List | MYR | 3,750 | 867 | 30 Days Credit Term | Malaysia |
| Thailand | PP Homo Injection | Bid Received | THB | 27,500 | 866 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Offer Given | THB | 28,000-28,500 | 882-898 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Offer Received | THB | 28,500 | 898 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Purchased | THB | 28,000 | 882 | Cash In Advance | Thailand |
| Malaysia | PP Homo Raffia | Price List | MYR | 3,800-3,850 | 879-890 | 30 Days Credit Term | Malaysia |
| Philippines | PP Homo Raffia | Offer Given | PHP | 67,000 | 1,185 | Cash In Advance | Philippines |
| Thailand | PP Homo Raffia | Bid Received | THB | 27,500 | 866 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Offer Given | THB | 28,000-28,500 | 882-898 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Offer Received | THB | 28,500 | 898 | Cash In Advance | Thailand |
Range of import PP offers between May 11 to May 15 on LC at sight, CIF Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Country |
|---|
| Southeast Asia | PP Block Copolymer | Offer Received | 920 | Philippines |
| Southeast Asia | PP Homo Film | Offer Received | 900 | Philippines |
| Southeast Asia | PP Homo Injection | Offer Received | 850-870 | Philippines |
| Southeast Asia | PP Homo Raffia | Offer Received | 850-870 | Philippines |
| Middle East | PP Homo Raffia | Offer Received | 850-860 | Myanmar |
| Southeast Asia | PP Homo Raffia | Offer Given | 850-870 | Southeast Asia |
Range of local/localized PP offers between May 18 to May 22 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 | Price List | MYR | 3,950 | 914 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Film | Offer Given | MYR | 3,950 | 914 | 30 Days Credit Term | Malaysia |
| Thailand | PP Homo Film | Offer Given | THB | 30,000-30,500 | 945-961 | Cash In Advance | Thailand |
| Malaysia | PP Homo Injection | Price List | MYR | 3,750 | 867 | 30 Days Credit Term | Malaysia |
| Southeast Asia | PP Homo Injection | Offer Given | PHP | 62,000-65,000 | 1,097-1,150 | Cash In Advance | Philippines |
| Thailand | PP Homo Injection | Offer Given | THB | 29,500 | 929 | Cash In Advance | Thailand |
| Malaysia | PP Homo Raffia | Price List | MYR | 3,800-3,850 | 879-890 | 30 Days Credit Term | Malaysia |
| Philippines | PP Homo Raffia | Offer Given | PHP | 67,000 | 1,185 | Cash In Advance | Philippines |
| Southeast Asia | PP Homo Raffia | Offer Given | PHP | 62,000-65,000 | 1,097-1,150 | Cash In Advance | Philippines |
| Thailand | PP Homo Raffia | Offer Given | THB | 29,500 | 929 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Sold | THB | 29,500 | 929 | Cash In Advance | Thailand |
Range of local PP offers between May 25 to May 29 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 | Price List | MYR | 3,950 | 914 | 30 Days Credit Term | Malaysia |
| Thailand | PP Homo Film | Offer Given | THB | 31,500 | 992 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Offer Received | THB | 31,000-31,500 | 976-992 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Offer Received | THB | 31,000 | 976 | 30 Days Credit Term | Thailand |
| Malaysia | PP Homo Injection | Price List | MYR | 3,750 | 867 | 30 Days Credit Term | Malaysia |
| Thailand | PP Homo Injection | Offer Given | THB | 30,500 | 961 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Offer Received | THB | 30,000-30,500 | 945-961 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Sold | THB | 28,000-28,500 | 882-898 | Cash In Advance | Thailand |
| Malaysia | PP Homo Raffia | Offer Given | MYR | 4,080 | 944 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Raffia | Offer Received | MYR | 4,130 | 955 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Raffia | Price List | MYR | 3,800-3,850 | 879-890 | 30 Days Credit Term | Malaysia |
| Philippines | PP Homo Raffia | Offer Given | PHP | 67,000 | 1,185 | Cash In Advance | Philippines |
| Thailand | PP Homo Raffia | Offer Given | THB | 30,500 | 961 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Offer Received | THB | 30,000-30,500 | 945-961 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Sold | THB | 28,000-28,500 | 882-898 | Cash In Advance | Thailand |
Tags: Asia Pacific,English,Monthly,PP,SEA
Published on June 2, 2020 1:17 PM (GMT+8)
Last Updated on June 2, 2020 1:17 PM (GMT+8)
