An Indonesian PS producer stated that their remaining allocation for this month would be prioritized to the domestic market. On Friday, June 5, the producer’s source contacted by SSESSMENTS.COM informed that this week’s allocation is yet to be sold out as most domestic players just returned from Eid Al-Fitr holiday and are still not keen in making procurements. The producer has already received orders from Chinese customers as much as 1,500-2,000 tons, around 2,000-2,500 tons lower from orders in May. However, the producer has planned to focus on selling their cargoes to the domestic market and is yet to decide how much allocation would be diverted to China as they need to monitor the sales in the local market. In the days to come, if the producer is unable to sell out their cargoes to the domestic market, then the company will likely allocate the cargoes to the China market.
In terms of prices, the producer is currently offering GPPS Injection to the China market at $950-960/ton on LC at sight, CIF China Main Port basis. In the local market, most market players have just returned from Eid Al-Fitr holiday, hence, demand is still slow this week. Despite that, the producer managed to close some deals with distributors and end-users, which concluded at $980/ton for GPPS Injection and at $1,150-1,155/ton for HIPS Injection. Both offers are on cash, FD Indonesia basis and excluding 10% VAT, SSESSMENTS.COM noted.
Further added by the producer to SSESSMENTS.COM, most traders and distributors reportedly held a substantial amount of inventory at present as they were unable to sell lots in the previous month. While from the converters’ end, demand is still weak but the producer believes that the current state will gradually improve in the near future. For ABS cargoes, the producer is offering Chinese ABS Injection cargoes at $1,280/ton for common grades.
