- Local, import offers were only firmer in January and softer for the rest of the quarter
- Overall demand was subdued due to Coronavirus outbreak
- Outlook is blurry, depends on the handling of Coronavirus
SSESSMENTS.COM data showed that PP prices in most Southeast Asian countries were only firmer in January and mostly soft for the rest of Q1 2020. In January, local PP Homopolymers prices in Thailand went up between THB1,000-2,500/ton ($30-76/ton) in total. Tight supply from the local producers was the major reason behind the firm offers during this month. Likewise, January delivery PP offers from a Malaysian polyolefins producer were adjusted up by MYR150/ton ($34/ton) in mid-January, after previously announced with no adjustment on December 27. Moving to February and March, local PP offers in the region started to soften due to sluggish demand amid concern over Coronavirus. During these two months, cumulative reductions made by local suppliers in Thailand were between THB3,500-4,500/ton ($107-137/ton). Similarly, local PP offers via traders in Malaysia dropped between MYR50-100/ton ($11.5-23/ton) in February citing slow sales, despite the local producer proceeded with an upward adjustment of between MYR120-180/ton ($27-41/ton) for February delivery. Eventually, the Malaysian polyolefins producer trimmed its March delivery offers for PP grades between MYR100-150/ton ($23-34/ton) from February. In the Philippines, local PP offers from the country’s leading polyolefins producer remained stable during the quarter. Detailed information for Indonesia and Vietnam market is available in QuarterlySSESSMENTS of the respective countries.
From the import market, SSESSMENTS.COM data showed that an upward trend was only captured at the beginning of the quarter. At the beginning of January, offers for PP Homo Raffia and PP Homo Film of Thailand origin to Vietnam went up by $20/ton on a weekly basis. Likewise, offers for Saudi PP Homo Raffia cargoes to Vietnam increased by the same amount during the same timeframe. For PP Block Copolymer, offers for Singaporean cargoes to Indonesia surged by $30/ton on a monthly comparison. In February, offers for March shipment for PP Homopolymer grades from a Malaysian polyolefins producer to the Philippines dropped $20/ton from February. March shipment offers from a Singaporean producer for PP Homo Raffia dropped drastically by $70/ton while PP Block Copolymer and PP Random Copolymer dipped by $50/ton, all compared to February shipment offers. For Middle Eastern cargoes, a significant reduction of $50/ton was captured on the week ending February 28. For Indian cargoes, offers for re-export cargoes from China dropped by $50/ton in total during February. Moving to March, lower offers became widely available in the region. At this particular month, Indian PP Homo Raffia cargoes broke below $900/ton-level, with deals concluded at $845/ton on LC at sight, CIF Southeast Asia Main Port basis on the week commencing March 23. By the end of the month, import offers for PP Homo Raffia broke another threshold level. On March 31, import China PP Homo Raffia cargoes offered to Vietnam broke below $800/ton, available at $780/ton on LC at sight, CIF Vietnam Main Port basis, which was the lowest offer captured to the Southeast Asia market by that time.
As mentioned earlier, demand for PP resins during the quarter was sluggish in general. Concern over Coronavirus outbreak cited as the biggest factor affected buying sentiment during this quarter. Additionally, the biggest drop in crude oil prices on March 9 following Saudi-Russia’s price war added uncertainties in the market, which led to softer monomer prices. Other than previous factors mentioned, sufficient stock on hand amid sluggish finished product sales at the converters’ end was also a reason for subdued PP resins demand. On the supply front, PP supply from Thai producers was tight during February but had no significant impact on the domestic market as demand was dull. Likewise, supply for PP from the Philippines JG Summit was generally tight during March, but traders cater to domestic demand via imports, as SSESSMENTS.COM noted. In the logistics sector, Coronavirus lockdown and restrictions had disrupted cargo delivery, such as in Malaysia and Vietnam. In the Philippines, month-long lockdown led to congestion at Manila Port and disrupted shipment of import cargoes to the country.
On the production front, Thai IRPC shut its 110,000 tons/year PP line no.1 and 120,000 tons/year PP line no.2 for maintenance shutdown starting from February 4 until February 15. Thai HMC also shut its PP line no.3 with a production capacity of 360,000 tons/year on February 26 for 20-day turnaround maintenance. The plant was later brought back on-stream in late March, as SSESSMENTS.COM noted. In Malaysia, Lotte Chemical Titan shut its whole petrochemical complex for turnaround maintenance in early March for around 25-30 days. The company operates three PP units with a production capacity of 166,000 tons/year, 274,000 tons/year and 200,000 tons/year respectively.
Entering Q2 2020, the majority of market players opined that local and import PP offers still have chances to move lower as concern over Coronavirus dominate the market. Additionally, the volatile crude oil prices also lead to many uncertainties and pushed buyers to the sidelines. Meanwhile, some others remain unsure of the outlook citing the market direction will be clearer once the Coronavirus lockdown is lifted, as stated to SSESSMENTS.COM.
Transactions for local/localized PP in January on FD basis, excluding VAT (except in PHP including 12% VAT, all equivalent in USD excluding VAT)
| Origin | Product | Transaction Type | Currency | Offers/ton | Equivalent in USD/ton | Payment Term | Delivery Country |
|---|
| Malaysia | PP Block Copolymer | Offer Received | MYR | 4,610 | 1,068 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Block Copolymer | Price List | MYR | 4,590-4,660 | 1,064-1,080 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Block Copolymer | Purchased | MYR | 4,300 | 996 | Cash In Advance | Malaysia |
| Malaysia | PP Block Copolymer | Purchased | MYR | 4,610 | 1,068 | 30 Days Credit Term | Malaysia |
| Thailand | PP Block Copolymer | Offer Given | THB | 33,500 | 1,023 | Cash In Advance | Thailand |
| Thailand | PP Block Copolymer | Offer Received | THB | 34,000 | 1,039 | Cash In Advance | Thailand |
| Malaysia | PP Homo Film | Offer Given | MYR | 4,670-4,820 | 1,082-1,117 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Film | Price List | MYR | 4,670 | 1,082 | 30 Days Credit Term | Malaysia |
| Philippines | PP Homo Film | Offer Given | PHP | 69,000 | 1,218 | Cash In Advance | Philippines |
| Philippines | PP Homo Film | Offer Received | PHP | 69,000 | 1,218 | Cash In Advance | Philippines |
| Southeast Asia | PP Homo Film | Offer Given | PHP | 67,000 | 1,182 | Cash In Advance | Philippines |
| Thailand | PP Homo Film | Offer Given | THB | 31,000-34,500 | 947-1,054 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Offer Received | THB | 32,000-33,500 | 978-1,023 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Sold | THB | 32,500 | 993 | Cash In Advance | Thailand |
| Malaysia | PP Homo Injection | Offer Received | MYR | 4,750 | 1,101 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Injection | Price List | MYR | 4,520 | 1,047 | 30 Days Credit Term | Malaysia |
| Philippines | PP Homo Injection | Offer Given | PHP | 68,000 | 1,200 | Cash In Advance | Philippines |
| Philippines | PP Homo Injection | Offer Received | PHP | 68,000-69,000 | 1,200-1,218 | Cash In Advance | Philippines |
| Thailand | PP Homo Injection | Bid Received | THB | 32,000 | 978 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Offer Given | THB | 31,000-34,000 | 947-1,039 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Offer Received | THB | 32,500-33,000 | 993-1,008 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Sold | THB | 32,000 | 978 | Cash In Advance | Thailand |
| Malaysia | PP Homo Raffia | Offer Given | MYR | 4,520 | 1,047 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Raffia | Offer Received | MYR | 4,500 | 1,043 | Cash In Advance | Malaysia |
| Malaysia | PP Homo Raffia | Price List | MYR | 4,520-4,570 | 1,047-1,059 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Raffia | Purchased | MYR | 4,500 | 1,043 | Cash In Advance | Malaysia |
| Philippines | PP Homo Raffia | Offer Given | PHP | 68,000 | 1,200 | Cash In Advance | Philippines |
| Philippines | PP Homo Raffia | Offer Received | PHP | 68,000-69,000 | 1,200-1,218 | Cash In Advance | Philippines |
| Southeast Asia | PP Homo Raffia | Offer Given | PHP | 66,000 | 1,165 | Cash In Advance | Philippines |
| Thailand | PP Homo Raffia | Bid Received | THB | 32,000 | 978 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Buy Idea | THB | 31,000-32,000 | 947-978 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Offer Given | THB | 30,500-34,500 | 932-1,054 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Offer Received | THB | 31,500-34,500 | 962-1,054 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Purchased | THB | 32,000-33,000 | 978-1,008 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Sold | THB | 32,000-33,500 | 978-1,023 | Cash In Advance | Thailand |
| Malaysia | PP Random Copolymer Extrusion | Price List | MYR | 4,950-5,600 | 1,147-1,298 | 30 Days Credit Term | Malaysia |
| Thailand | PP Random Copolymer Injection | Offer Given | THB | 37,500 | 1,146 | Cash In Advance | Thailand |
Transactions for import PP in January on LC at sight, CIF/CFR Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Country |
|---|
| Southeast Asia | PP Block Copolymer | Offer Received | 1,160 | Malaysia |
| Southeast Asia | PP Block Copolymer | Purchased | 1,140 | Malaysia |
| Southeast Asia | PP Block Copolymer | Offer Given | 1,100 | Philippines |
| Southeast Asia | PP Block Copolymer | Offer Received | 1,200 | Philippines |
| Southeast Asia | PP Block Copolymer | Offer Received | 1,170-1,180 | Southeast Asia |
| Southeast Asia | PP Block Copolymer | Price List | 1,150 | Southeast Asia |
| Indian Subcontinent | PP Homo Film | Offer Given | 1,040 | Myanmar |
| Indian Subcontinent | PP Homo Film | Sold | 1,040 | Myanmar |
| Southeast Asia | PP Homo Film | Offer Given | 1,050 | Philippines |
| Southeast Asia | PP Homo Film | Offer Received | 1,150 | Philippines |
| Southeast Asia | PP Homo Film | Purchased | 1,040 | Philippines |
| Southeast Asia | PP Homo Film | Sold | 1,050 | Philippines |
| Southeast Asia | PP Homo Film | Offer Given | 1,080-1,100 | Southeast Asia |
| Southeast Asia | PP Homo Injection | Offer Given | 1,020 | Philippines |
| China | PP Homo Raffia | Offer Received | 965-975 | Philippines |
| Indian Subcontinent | PP Homo Raffia | Offer Given | 1,010 | Myanmar |
| Indian Subcontinent | PP Homo Raffia | Sold | 1,010-1,020 | Myanmar |
| Indian Subcontinent | PP Homo Raffia | Offer Given | 980 | Southeast Asia |
| Indian Subcontinent | PP Homo Raffia | Sold | 980 | Southeast Asia |
| Middle East | PP Homo Raffia | Buy Idea | 980-990 | Myanmar |
| Middle East | PP Homo Raffia | Sold | 1,020 | Myanmar |
| Middle East | PP Homo Raffia | Offer Received | 980 | Thailand |
| Southeast Asia | PP Homo Raffia | Offer Received | 1,040-1,120 | Myanmar |
| Southeast Asia | PP Homo Raffia | Bid Received | 1,030-1,040 | Philippines |
| Southeast Asia | PP Homo Raffia | Offer Given | 1,020-1,100 | Philippines |
| Southeast Asia | PP Homo Raffia | Offer Received | 1,080 | Philippines |
| Southeast Asia | PP Homo Raffia | Sold | 1,020 | Philippines |
| Southeast Asia | PP Homo Raffia | Offer Given | 990-1,070 | Southeast Asia |
| Southeast Asia | PP Homo Raffia | Price List | 1,120 | Southeast Asia |
| Southeast Asia | PP Random Copolymer Blow | Offer Received | 1,240 | Malaysia |
| Southeast Asia | PP Random Copolymer Blow | Purchased | 1,240 | Malaysia |
| Southeast Asia | PP Random Copolymer Injection | Price List | 1,210 | Southeast Asia |
Transactions for local PP in February on FD basis, excluding VAT (except in PHP including 12% VAT, all equivalent in USD excluding VAT)
| Origin | Product | Transaction Type | Currency | Offers/ton | Equivalent in USD/ton | Payment Term | Delivery Location |
|---|
| Malaysia | PP Block Copolymer | Price List | MYR | 4,670-4,840 | 1,082-1,122 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Block Copolymer | Purchased | MYR | 4,770 | 1,105 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Film | Price List | MYR | 4,850 | 1,124 | 30 Days Credit Term | Malaysia |
| Thailand | PP Homo Film | Offer Given | THB | 33,000-34,500 | 1,008-1,054 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Sell Idea | THB | 33,000 | 1,008 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Sold | THB | 33,500 | 1,023 | Cash In Advance | Thailand |
| Malaysia | PP Homo Film | Offer Given | MYR | 4,750-4,850 | 1,101-1,124 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Film | Offer Received | USD | 1,050 | - | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Film | Price List | MYR | 4,750 | 1,101 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Film | Purchased | USD | 1,050 | - | 30 Days Credit Term | Malaysia |
| Philippines | PP Homo Film | Offer Given | PHP | 68,000-69,000 | 1,200-1,218 | Cash In Advance | Philippines |
| Thailand | PP Homo Film | Offer Given | THB | 33,500-34,500 | 1,023-1,054 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Offer Received | THB | 33,000 | 1,008 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Sold | THB | 33,000 | 1,008 | Cash In Advance | Thailand |
| Malaysia | PP Homo Injection | Price List | MYR | 4,550-4,700 | 1,054-1,089 | 30 Days Credit Term | Malaysia |
| Thailand | PP Homo Injection | Offer Given | THB | 32,500-34,000 | 993-1,039 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Offer Received | THB | 32,500 | 993 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Sell Idea | THB | 32,500 | 993 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Sold | THB | 32,500-34,000 | 993-1,039 | Cash In Advance | Thailand |
| Malaysia | PP Homo Raffia | Offer Received | MYR | 4,220-4,650 | 978-1,077 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Raffia | Offer Received | USD | 1,050 | - | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Raffia | Price List | MYR | 4,600-4,750 | 1,066-1,101 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Raffia | Purchased | MYR | 4,220-4,650 | 978-1,077 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Raffia | Sold | MYR | 4,650 | 1,077 | 30 Days Credit Term | Malaysia |
| Philippines | PP Homo Raffia | Offer Given | PHP | 67,000 | 1,182 | Cash In Advance | Philippines |
| Philippines | PP Homo Raffia | Offer Received | PHP | 68,000 | 1,200 | Cash In Advance | Philippines |
| Thailand | PP Homo Raffia | Offer Given | THB | 32,500-34,000 | 993-1,039 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Offer Received | THB | 32,500-34,000 | 993-1,039 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Sell Idea | THB | 32,500 | 993 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Sold | THB | 32,500-34,000 | 993-1,039 | Cash In Advance | Thailand |
| Malaysia | PP Random Copolymer Extrusion | Price List | MYR | 4,970-5,720 | 1,152-1,325 | 30 Days Credit Term | Malaysia |
Transactions for import PP in February on LC at sight, CIF/CFR Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Country |
|---|
| Southeast Asia | PP Block Copolymer | Price List | 1,100 | Malaysia |
| Southeast Asia | PP Block Copolymer | Offer Received | 1,150 | Southeast Asia |
| Middle East | PP Homo Film | Offer Given | 990 | Malaysia |
| Middle East | PP Homo Film | Sold | 990 | Malaysia |
| Middle East | PP Homo Film | Offer Received | 970 | Thailand |
| Southeast Asia | PP Homo Film | Offer Given | 1,130 | Philippines |
| Southeast Asia | PP Homo Film | Offer Received | 1,000-1,070 | Philippines |
| Southeast Asia | PP Homo Injection | Offer Given | 970-1,100 | Philippines |
| Southeast Asia | PP Homo Injection | Sold | 1,090 | Philippines |
| Southeast Asia | PP Homo Injection | Offer Received | 1,040-1,050 | Thailand |
| China | PP Homo Raffia | Offer Given | 960 | Southeast Asia |
| Far East Asia | PP Homo Raffia | Offer Received | 950 | Myanmar |
| Middle East | PP Homo Raffia | Offer Received | 960-1,020 | Myanmar |
| Southeast Asia | PP Homo Raffia | Offer Given | 1,020 | Malaysia |
| Southeast Asia | PP Homo Raffia | Price List | 1,050 | Malaysia |
| Southeast Asia | PP Homo Raffia | Purchased | 1,120 | Malaysia |
| Southeast Asia | PP Homo Raffia | Sold | 1,020 | Malaysia |
| Southeast Asia | PP Homo Raffia | Offer Given | 970-1,100 | Philippines |
| Southeast Asia | PP Homo Raffia | Offer Received | 930-1,090 | Philippines |
| Southeast Asia | PP Homo Raffia | Sold | 1,090 | Philippines |
| Southeast Asia | PP Homo Raffia | Offer Received | 970-1,050 | Thailand |
| Southeast Asia | PP Homo Raffia | Purchased | 970 | Thailand |
| Southeast Asia | PP Random Copolymer Injection | Price List | 1,160 | Malaysia |
Transactions for local PP in March on FD basis, excluding VAT (except in PHP including 12% VAT, all equivalent in USD excluding VAT)
| Origin | Product | Transaction Type | Currency | Offers/ton | Equivalent in USD/ton | Payment Term | Delivery Location |
|---|
| Malaysia | PP Block Copolymer | Offer Received | MYR | 4,700 | 1,089 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Block Copolymer | Purchased | MYR | 4,700 | 1,089 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Film | Offer Given | MYR | 4,550-4,750 | 1,054-1,101 | 30 Days Credit Term | Malaysia |
| Thailand | PP Homo Film | Offer Given | THB | 30,000-34,000 | 916-1,039 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Offer Received | THB | 31,250-32,750 | 955-1,001 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Purchased | THB | 32,000 | 978 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Sold | THB | 29,500-31,000 | 901-947 | Cash In Advance | Thailand |
| Malaysia | PP Homo Injection | Offer Given | MYR | 4,550 | 1,054 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Injection | Sold | MYR | 4,550 | 1,054 | 30 Days Credit Term | Malaysia |
| Thailand | PP Homo Injection | Offer Given | THB | 29,500-33,500 | 901-1,023 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Offer Received | THB | 32,000-32,250 | 978-985 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Sold | THB | 29,000-30,500 | 886-932 | Cash In Advance | Thailand |
| Malaysia | PP Homo Raffia | Offer Given | MYR | 4,600 | 1,066 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Raffia | Offer Given | MYR | 4,600 | 1,066 | Cash In Advance | Malaysia |
| Malaysia | PP Homo Raffia | Offer Received | MYR | 4,100-4,550 | 950-1,054 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Raffia | Purchased | MYR | 4,540 | 1,052 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Raffia | Purchased | MYR | 4,300 | 996 | Cash In Advance | Malaysia |
| Malaysia | PP Homo Raffia | Sold | MYR | 4,600 | 1,066 | 30 Days Credit Term | Malaysia |
| Philippines | PP Homo Raffia | Offer Given | PHP | 67,000 | 1,182 | Cash In Advance | Philippines |
| Thailand | PP Homo Raffia | Offer Given | THB | 29,500-33,500 | 901-1,023 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Offer Received | THB | 30,750-33,500 | 939-1,023 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Sold | THB | 29,000-30,500 | 886-932 | Cash In Advance | Thailand |
Transactions for import PP in March on LC at sight, CIF Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Country |
|---|
| Southeast Asia | PP Block Copolymer | Offer Received | 1,010 | Malaysia |
| Southeast Asia | PP Block Copolymer | Offer Received | 1,050 | Southeast Asia |
| Indian Subcontinent | PP Homo Film | Sold | 960 | Myanmar |
| Middle East | PP Homo Film | Buy Idea | 930 | Malaysia |
| Middle East | PP Homo Film | Offer Given | 950-960 | Malaysia |
| Southeast Asia | PP Homo Injection | Sold | 950 | Philippines |
| China | PP Homo Raffia | Offer Given | 910-940 | Philippines |
| China | PP Homo Raffia | Offer Given | 940 | Southeast Asia |
| Indian Subcontinent | PP Homo Raffia | Sold | 930 | Myanmar |
| Indian Subcontinent | PP Homo Raffia | Offer Given | 845 | Southeast Asia |
| Indian Subcontinent | PP Homo Raffia | Sold | 845 | Southeast Asia |
| Middle East | PP Homo Raffia | Buy Idea | 900 | Myanmar |
| Middle East | PP Homo Raffia | Offer Received | 820-950 | Myanmar |
| Southeast Asia | PP Homo Raffia | Offer Given | 850 | Philippines |
| Southeast Asia | PP Homo Raffia | Sold | 960 | Philippines |
| Southeast Asia | PP Homo Raffia | Offer Received | 930 | Thailand |
| Middle East | PP Random Copolymer Injection | Offer Received | 900 | Thailand |
| Middle East | PP Random Copolymer Injection | Purchased | 900 | Thailand |
Tags: Asia Pacific,English,PP,Quarterly,SEA
Published on April 11, 2020 4:51 PM (GMT+8)
Last Updated on April 11, 2020 9:49 PM (GMT+8)
