- Import PP Homo Film offers recorded an increase of triple digits in June
- Concern over coronavirus outbreak dented market sentiment
- Pricing outlook firm on tight supply, a further price increase remains feasible
As coronavirus began its relentless march around the globe, this pandemic has sent ripples of shock waves across Southeast Asian PP markets, sources reported to SSESSMENTS.COM. During the second quarter of 2020, Southeast Asia’s domestic and import PP prices were largely taking cues from global crude oil futures as more signs of the global spread of the coronavirus heightened fears of a pandemic, which could thwart fuel demand. In April, local PP prices in Southeast Asia went on a rollercoaster ride, as news of the coronavirus continued to paint a dire picture. In Malaysia, April delivery offers for PP Homopolymer and Copolymer grades from the local producer lowered between MYR350-800/ton ($82-187/ton) compared to March. In Thailand, offers for PP Homopolymer grades from the local producers were mostly captured on a downtrend during the first half of April, with a total reduction of between THB500-1,000/ton ($16-32/ton). However, on the week commencing April 20, Thai producers adjusted up the offers for PP across all grades by THB1,500/ton ($48/ton) on a weekly basis as the producers managed to sell big quantities to domestic and export markets. Meanwhile, the leading Philippines polyolefins producer refused to provide pricing quotes to the domestic market in April, chose to selectively offer cargoes if there were inquiries from buyers. From the import market, most sellers set off a round of price cuts amid a hammering of markets by coronavirus pandemic and a sharp slump in crude oil prices to multi-year lows. Overall, Southeast Asia’s import PP prices in April gained a cumulative decrease of $50/ton.
In May, SSESSMENTS.COM was informed that local PP offers in Southeast Asia showed different trends each week. In Malaysia, May delivery offers for PP Homopolymer grades from the leading Malaysian polyolefins producer were unchanged as compared to April, while offers for PP Copolymer grades were down by MYR250-260/ton ($58-61/ton) compared to the same period. Whereas in Thailand, local producers quoted higher offers for PP Homopolymer grades to the domestic market in May, with a range of increase between THB500-1,000/ton ($16-32/ton) week by week, mainly fuelled by tight supply concerns. From the import market, Southeast Asia’s import PP prices in May gained a cumulative increase of between $20-40/ton. In response to sharp gains in import prices, most buyers in the region were holding back their purchases in anticipation of greater falls in prices, mainly due to a large drop in demand in domestic and export destination countries driven by the pandemic crisis.
Southeast Asia’s domestic and import PP prices gained ground in June as crude oil prices bounced up from the historic April lows, coupled with tight availability of spot cargoes. In Malaysia, June delivery offers for PP Homopolymer and Copolymer grades from a local producer edged higher between MYR100-280/ton ($23-65/ton) compared to May. In the Philippines, local PP offers from the leading polyolefins producer on the week commencing June 8 increased between PHP1,000-2,000/ton ($20-40/ton). Whereas in Thailand, offers for PP Homopolymer grades from the local producers were mostly captured on an uptrend during June, with a range of increase between THB500-2,000/ton ($16-64/ton) week by week. From the import market, July shipment offers for PP Homo Film from a Middle Eastern producer surfaced with a significant increase as much as $130/ton on a monthly basis. Detailed information for Indonesia and Vietnam market is available in QuarterlySSESSMENTS of the respective countries.
Southeast Asia PP market continued to face strong headwinds in Q2 2020, with coronavirus still dominating as a key factor in the market. The market was hit hard by coronavirus shutdowns that started sweeping the region in the late February and early March, derailing entire sectors of the economy and decimating consumer spending. In April, overall buying sentiment was sluggish, weighed down by market players' concerns on how the spread of the lethal virus could affect trade flows and have an effect on global prices. Besides, the biggest drop in crude oil prices also pushed the market into a slowdown and led to rising uncertainties. Despite a steady increase in coronavirus cases in some parts of the region, Southeast Asian countries have begun easing its lockdown in a phase-wise manner from early May. Even though most countries were taking a gradual approach to lifting restrictions, sources pointed out that some downstream factories were still struggling to keep their operating rate at normal levels amid weak end-users demand for finished products. In the second half of May, activity in Malaysia and Indonesia market remained muted, with limited spot trades taking place as the majority of market players were away from their desks for Eid Al-Fitr celebration. In June, concerns that the second wave of coronavirus infections was hitting the region as it emerged from lockdown, with buyers purchasing on a hand-to-mouth basis only, and unwilling to build inventories amid worsening economic outlook. Further added, as the rally in crude oil prices has sent most commodities prices spiralling upward, some buyers in the region started showing a strong resistance toward higher offers as no strong demand fundamentals to support any form of price hikes.
On plant news, Thailand’s Integrated Refinery Petrochemical Complex (IRPC) took its PP line no. 3 and no. 4 off-stream in the middle of June. The producer’s PP line no. 3 remained closed for maintenance work from June 12 until June 26. Upon the completion of maintenance at PP line no. 3, the producer also underwent a maintenance shutdown at its PP line no. 4 starting from June 29 and expected to be back on-stream in mid-July. Located in Rayong Province, Thailand, PP line no. 3 and no. 4 have a production capacity of 225,000 tons/year and 160,000 tons/year, respectively.
Entering the third quarter of 2020, market participants in Southeast Asia voiced out to SSESSMENTS.COM that the coronavirus pandemic will continue to weigh heavily on overseas and domestic demand, considering raising fears over a second wave of the coronavirus following a spike in untraceable local infections and imported cases in the region. Although the coronavirus pandemic continues to take a toll on demand, some sources expect that PP prices will continue its upward trend, citing limited availability of spot cargoes.
Transactions for local/localized PP in April 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 | Price List | MYR | 4,060-4,380 | 948-1,023 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Film | Offer Given | MYR | 3,950 | 922 | 30 Days Credit Terms | Malaysia |
| Malaysia | PP Homo Film | Price List | MYR | 3,950 | 922 | 30 Days Credit Term | Malaysia |
| Thailand | PP Homo Film | Offer Given | THB | 27,500-30,500 | 884-980 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Offer Given | THB | 28,500-29,000 | 916-932 | 30 Days Credit Term | Thailand |
| Thailand | PP Homo Film | Offer Received | THB | 26,500-30,000 | 851-964 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Purchased | THB | 27,000-31,000 | 868-996 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Sell Idea | THB | 29,000 | 932 | Cash In Advance | Thailand |
| Malaysia | PP Homo Raffia | Offer Given | MYR | 3,800 | 887 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Injection | Price List | MYR | 3,750 | 876 | 30 Days Credit Term | Malaysia |
| Southeast Asia | PP Homo Injection | Offer Given | PHP | 62,000-65,000 | 1,120-1,174 | Cash In Advance | Philippines |
| Thailand | PP Homo Injection | Offer Given | THB | 27,000-30,000 | 868-964 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Offer Given | THB | 28,000-28,500 | 890-916 | 30 Days Credit Term | Thailand |
| Thailand | PP Homo Injection | Offer Received | THB | 26,000-28,500 | 835-916 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Sold | THB | 27,500-28,500 | 884-916 | Cash In Advance | Thailand |
| Malaysia | PP Homo Raffia | Offer Received | MYR | 3,600 | 841 | Cash In Advance | Malaysia |
| Malaysia | PP Homo Raffia | Price List | MYR | 3,800-4,650 | 887-1,086 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Raffia | Purchased | MYR | 3,600-4,600 | 841-1,074 | Cash In Advance | Malaysia |
| Malaysia | PP Homo Raffia | Purchased | USD | 815 | - | Cash In Advance | Malaysia |
| Philippines | PP Homo Raffia | Offer Given | PHP | 67,00 | 1,210 | Cash In Advance | Philippines |
| Southeast Asia | PP Homo Raffia | Offer Given | PHP | 62,00-65,000 | 1,120-1,174 | Cash In Advance | Philippines |
| Thailand | PP Homo Raffia | Buy Idea | THB | 27,500-28,000 | 884-890 | 30 Days Credit Term | Thailand |
| Thailand | PP Homo Raffia | Offer Given | THB | 26,500-30,000 | 851-964 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Offer Given | THB | 28,000-28,500 | 890-916 | 30 Days Credit Term | Thailand |
| Thailand | PP Homo Raffia | Offer Received | THB | 26,000-29,500 | 835-948 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Sell Idea | THB | 28,500 | 916 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Sold | THB | 27,500-28,500 | 884-916 | Cash In Advance | Thailand |
| Malaysia | PP Random Copolymer Extrusion | Price List | MYR | 4,360-5,270 | 1,018-1,231 | 30 Days Credit Term | Malaysia |
| Thailand | PP Random Copolymer Injection | Offer Given | THB | 33,500-34,500 | 1,076-1,109 | Cash In Advance | Thailand |
Transactions for import PP in April on LC at sight, CIF Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Location |
|---|
| Southeast Asia | PP Block Copolymer | Offer Received | 950 | Southeast Asia |
| Middle East | PP Homo Film | Offer Received | 800 | Thailand |
| Middle East | PP Homo Film | Purchased | 800 | Thailand |
| Southeast Asia | PP Homo Raffia | Offer Received | 850-880 | Philippines |
| Southeast Asia | PP Homo Raffia | Sold | 890 | Philippines |
| Middle East | PP Homo Raffia | Offer Received | 790 | Myanmar |
| Southeast Asia | PP Homo Raffia | Offer Received | 810 | Thailand |
| Southeast Asia | PP Homo Raffia | Offer Given | 800-850 | Southeast Asia |
| Southeast Asia | PP Homo Raffia | Offer Received | 800 | Malaysia |
Transactions for local PP in May 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 | Price List | MYR | 4,060-4,230 | 946-985 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Film | Offer Given | MYR | 3,950 | 922 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Film | Price List | MYR | 3,950 | 922 | 30 Days Credit Term | Malaysia |
| Thailand | PP Homo Film | Bid Received | THB | 28,000 | 890 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Buy Idea | THB | 26,500 | 851 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Offer Given | THB | 28,500-31,500 | 916-1,012 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Offer Received | THB | 28,500-31,500 | 916-1,012 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Offer Received | THB | 31,000 | 996 | 30 Days Credit Term | Thailand |
| Thailand | PP Homo Film | Purchased | THB | 28,250 | 908 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Sell Idea | THB | 27,500-28,000 | 884-890 | Cash In Advance | Thailand |
| Malaysia | PP Homo Injection | Price List | MYR | 3,750 | 876 | 30 Days Credit Term | Malaysia |
| Southeast Asia | PP Homo Injection | Offer Given | PHP | 62,000-65,000 | 1,120-1,174 | Cash In Advance | Philippines |
| Thailand | PP Homo Injection | Bid Received | THB | 27,500 | 884 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Offer Given | THB | 27,250-30,500 | 876-980 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Offer Received | THB | 30,000-30,500 | 964-980 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Purchased | THB | 28,000 | 890 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Sell Idea | THB | 27,000-27,500 | 868-884 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Sold | THB | 28,000-28,500 | 890-916 | Cash In Advance | Thailand |
| Malaysia | PP Homo Raffia | Offer Given | MYR | 4,080 | 953 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Raffia | Offer Received | MYR | 3,750-4,130 | 876-964 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Raffia | Price List | MYR | 3,800-3,850 | 887-899 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Raffia | Purchased | MYR | 3,650 | 852 | 30 Days Credit Term | Malaysia |
| Philippines | PP Homo Raffia | Offer Given | PHP | 67,000 | 1,210 | Cash In Advance | Philippines |
| Southeast Asia | PP Homo Raffia | Offer Given | PHP | 62,000-65,000 | 1,120-1,174 | Cash In Advance | Philippines |
| Thailand | PP Homo Raffia | Bid Received | THB | 27,500 | 884 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Buy Idea | THB | 26,000 | 835 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Offer Given | THB | 27,250-30,500 | 876-980 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Offer Received | THB | 28,000-30,500 | 890-980 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Sell Idea | THB | 27,000-27,500 | 868-884 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Sold | THB | 28,000-29,500 | 890-948 | Cash In Advance | Thailand |
| Malaysia | PP Random Copolymer Extrusion | Price List | MYR | 4,360-5,190 | 1,018-1,212 | 30 Days Credit Term | Malaysia |
Transactions for import PP in May on LC at sight, CIF Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Location |
|---|
| Southeast Asia | PP Block Copolymer | Offer Received | 920 | Philippines |
| Middle East | PP Homo Film | Offer Received | 890 | Philippines |
| Middle East | PP Homo Film | Price List | 910 | Philippines |
| Southeast Asia | PP Homo Film | Offer Received | 890-900 | Philippines |
| Middle East | PP Homo Injection | Price List | 910 | Philippines |
| Southeast Asia | PP Homo Injection | Offer Received | 850-870 | Philippines |
| Middle East | PP Homo Raffia | Price List | 880 | Philippines |
| Middle East | PP Homo Raffia | Offer Received | 850-860 | Myanmar |
| Southeast Asia | PP Homo Raffia | Offer Received | 850-870 | Philippines |
| Southeast Asia | PP Homo Raffia | Offer Given | 850-870 | Southeast Asia |
| Southeast Asia | PP Homo Raffia | Sold | 900 | Southeast Asia |
| Middle East | PP Random Copolymer Injection | Price List | 1,020 | Philippines |
Transactions for local PP in June 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 Given | MYR | 4,440 | 1,037 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Block Copolymer | Price List | MYR | 4,440-4,510 | 1,037-1,053 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Film | Offer Received | MYR | 4,230-4,290 | 988-1,002 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Film | Price List | MYR | 4,550 | 1,062 | 30 Days Credit Term | Malaysia |
| Philippines | PP Homo Film | Offer Received | PHP | 62,000-63,000 | 1,120-1,138 | Cash In Advance | Philippines |
| Philippines | PP Homo Film | Purchased | USD | 1,000 | - | Cash In Advance | Philippines |
| Thailand | PP Homo Film | Offer Given | THB | 34,000-37,000 | 1,092-1,189 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Offer Received | THB | 32,000-36,000 | 1,028-1,157 | Cash In Advance | Thailand |
| Thailand | PP Homo Film | Sold | THB | 29,500 | 948 | Cash In Advance | Thailand |
| Malaysia | PP Homo Injection | Offer Given | MYR | 4,030-4,350 | 941-1,013 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Injection | Price List | MYR | 4,030-4,350 | 941-1,013 | 30 Days Credit Term | Malaysia |
| Philippines | PP Homo Injection | Offer Received | PHP | 60,000-61,000 | 1,084-1,102 | Cash In Advance | Philippines |
| Thailand | PP Homo Injection | Offer Given | THB | 30,500-37,000 | 980-1,189 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Offer Received | THB | 32,000-35,500 | 1,028-1,141 | Cash In Advance | Thailand |
| Thailand | PP Homo Injection | Sold | THB | 29,000-30,500 | 932-980 | Cash In Advance | Thailand |
| Malaysia | PP Homo Raffia | Offer Given | MYR | 4,080-4,130 | 953-964 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Raffia | Price List | MYR | 4,080-4,450 | 953-1,037 | 30 Days Credit Term | Malaysia |
| Malaysia | PP Homo Raffia | Purchased | MYR | 4,300 | 1,004 | Cash In Advance | Malaysia |
| Malaysia | PP Homo Raffia | Sold | MYR | 4,080 | 953 | Cash In Advance | Malaysia |
| Philippines | PP Homo Raffia | Offer Received | PHP | 60,000-62,000 | 1,084-1,120 | 60 Days Credit Term | Philippines |
| Philippines | PP Homo Raffia | Offer Received | PHP | 60,000-61,000 | 1,084-1,102 | Cash In Advance | Philippines |
| Philippines | PP Homo Raffia | Purchased | USD | 950 | - | Cash In Advance | Philippines |
| Thailand | PP Homo Raffia | Offer Given | THB | 30,500-36,000 | 980-1,157 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Offer Received | THB | 31,500-36,000 | 1,012-1,157 | Cash In Advance | Thailand |
| Thailand | PP Homo Raffia | Offer Received | THB | 33,500 | 1,076 | 30 Days Credit Term | Thailand |
| Thailand | PP Homo Raffia | Sold | THB | 29,000-30,500 | 932-980 | Cash In Advance | Thailand |
| Malaysia | PP Random Copolymer Extrusion | Price List | MYR | 4,820-5,470 | 1,126-1,277 | 30 Days Credit Term | Malaysia |
Transactions for import PP in June on LC at sight, CIF Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Location |
|---|
| Middle East | PP Block Copolymer | Offer Received | 950 | Myanmar |
| Southeast Asia | PP Block Copolymer | Sold | 980-990 | Southeast Asia |
| Indian Subcontinent | PP Homo Film | Offer Received | 890 | Thailand |
| Middle East | PP Homo Film | Offer Received | 990 | Philippines |
| Southeast Asia | PP Homo Film | Offer Received | 1,020 | Philippines |
| Middle East | PP Homo Raffia | Offer Received | 865-880 | Myanmar |
| Southeast Asia | PP Homo Raffia | Sell Idea | 900 | Southeast Asia |
| Southeast Asia | PP Homo Raffia | Sold | 920 | Southeast Asia |
| Southeast Asia | PP Homo Raffia | Sold | 960-980 | Philippines |
Tags: Asia Pacific,English,PP,Quarterly,SEA
Published on July 7, 2020 3:25 PM (GMT+8)
Last Updated on September 18, 2020 1:00 PM (GMT+8)
