A Vietnamese PS producer reported to SSESSMENTS.COM that its customers in China submitted bids at a surprising level for GPPS Injection cargoes. Due to the expectation for a lower offer in days to come, Chinese customers were submitting bids at $800-850/ton on LC at sight, CIF China Main Port basis, which is between $120-170/ton lower from the initial offer level. Although the bids were rejected, the producer stated a possibility for a lower offer in the upcoming week provided that SM cost continues to drop and crude oil prices could not rebound.
In terms of prices, SSESSMENTS.COM was told that the local offers for GPPS Injection from the producer decreased between $10-60/ton compared to last week depending on the quantities of purchases. While export offers on FOB basis were trimmed between $30-50/ton from last week.
Although domestic demand is slowing down, the producer stated that it is still better compared to other Southeast Asian countries, such as Indonesia where the demand has been decreased significantly following the depreciation of Indonesian Rupiah and spike in confirmed Coronavirus cases. The producer added that demand from Southeast Asia and China market is slowing down as buyers are expecting a lower price. “We are unsure of how much reduction will be made, however, lower offers will be available next week,” the producer stated to SSESSMENTS.COM.
