A Malaysian PS producer noted contrasting demand in China and Southeast Asia market. For this week, the offers for HIPS Injection from the Malaysian producer to China and Southeast Asia market recorded between $970-1,000/ton on LC at sight, CIF Main Port basis. The producer stated that the company managed to conclude deals at the initial offer level to China market. However, there is no inquiry received yet from Southeast Asian buyers. “We think it’s easier to sell to China market as our customers are traders. While to the Southeast Asia market, most customers are end-users and the demand will depend on the finished-product sales. Hence, Southeast Asian buyers are still hesitant in making purchases or only make procurement for a small quantity,” the producer revealed to SSESSMENTS.COM.
Further explained to SSESSMENTS.COM, the producer managed to conclude deals at $950/ton-level to the Southeast Asia market last week. Coming to this week, there are no inquiries submitted yet. The producer added that the market situation both in Indonesia and Malaysia is sluggish. On the production sector, the producer is running production at a full rate. Although the production activity is running at full rate, the producer is limiting the spot allocation in order to build reserves inventory for the upcoming shutdown in October and for the contract-based customers.
Looking ahead, the producer opined to SSESSMENTS.COM that the current situation in the Southeast Asia market will most likely persist. While for the China market, the demand is expected to remain satisfactory throughout June.
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