An Indonesian PS producer revealed to SSESSMENTS.COM on diverting cargoes to China market. Previously on June 5, SSESSMENTS.COM was informed that the producer already received orders around 1,500-2,000 tons from Chinese customers. At that time, the producer planned to focus on selling the remaining allocation to the domestic market and yet to decide the number of allocation that will be offered to the China market. As the demand in the domestic market remains weak, the producer revealed that the company already sold around 2,000-2,500 tons of GPPS Injection to China market as of June 11, with deals closed at $950/ton on LC at sight, CIF China Main Port basis. While in the domestic market, the producer stated that there is still some allocation available and the offers were kept stable from last week.
Further explained to SSESSMENTS.COM, domestic demand for home appliances remains sluggish and the converters’ operating rate is around 40% from the normal capacity. As such, the buying quantity from converters is only around 30% of the normal volume. Demand for refrigerator and AC remains stagnant as well, while inventory in the warehouse is abundant. For food packaging, the demand is lightly improved and the operating rates from this industry are around 60% from the normal rate.
