A Malaysian PS producer reported to SSESSMENTS.COM that the company is holding back its Q3 2020 sales prior to maintenance shutdown as anticipation of procurement activity towards year-end. For the week commencing June 29, the offers for HIPS Injection from a Malaysian producer to both local and export markets are recorded at $1,080-1,100/ton. The producer explained that the offers are purposely kept at a high level in order to hold back sales and build buffer stocks. Building buffer stocks will be important as the producer has planned turnaround maintenance starting in the last week of October for 40 days while buyers are expected to start making procurement again in Q4 2020. Further explained, demand in Q1 2020 was quite satisfactory and in Q2, the market was muted due to the Coronavirus pandemic. However, more countries are starting to reopen businesses in Q3 2020. As such, the producer still has to build inventory although there is a possibility for the maintenance schedule to be delayed.
For the current demand, the producer informed to SSESSMENTS.COM that the market is relatively quiet as customers from both local and export markets, such as Southeast Asia and China are just checking the price level without any intention to make procurement. Looking ahead, the producer predicts that PS price movement will most likely depend on the demand conditions. “Current profit margin for PS producer is good, as such, there is a possibility for the price to be adjusted lower between $10-20/ton if their inventory is ample. Otherwise, the offers will remain firm. However, the price will certainly move lower if the demand is not showing any sign of improvement,” the producer added.
