As contacted by SSESSMENTS.COM, a Malaysian PS producer mentioned that the company skipped offering to the China market this week. The producer is building inventory as buffer stock during the upcoming maintenance. Hence, the available cargoes are limited and not enough to offer to China as purchasing volume from customers in the country is big. At the moment, the producer is only able to provide limited material to the spot market since most allocation goes to contract customers.
The producer revealed to SSESSMENTS.COM that offers for HIPS Injection to the domestic and Southeast Asia market remain stable compared to last week. Some deals were successfully concluded at the beginning of the week, but starting from Wednesday (June 10) sales started to wane as buyers became more cautious, particularly after a drop in crude oil prices. The producer opined that PS prices will remain positive until the end of the month owing to the current increasing SM prices. As for PS demand, further improvements are expected to be seen in Q3 of 2020 although the increase might only be 10-20% from the current demand.
