- Price movement in Q2 2020 affected by the coronavirus conditions in each country
- Demand for PS resin dragged down by poor demand for end-products
- Market players remain unsure of the Q3 2020 demand outlook
According to data collected by SSESSMENTS.COM’s team, overall PS resins demand was subdued throughout Q2 2020 as the Southeast Asia market faced the effects of the coronavirus outbreak. In Indonesia, local GPPS Injection and HIPS Injection offers via traders were relatively stable week-over-week during April before an Indonesian PS producer announced that May delivery offers for both GPPS Injection and HIPS Injection decreased by $110/ton on the monthly comparison on April 30. In Vietnam, local GPPS Injection decreased until it reached the number below $1,000/ton-level for offers in USD denomination.
Moving to May, SSESSMENTS.COM observed various price trends in the local market. From Indonesian traders’ end, offers for local GPPS Injection and HIPS Injection were adjusted down by IDR500,000/ton ($34/ton) after relieving rollercoaster trends in early May. Local GPPS Injection and HIPS in Indonesia then remained stable until the end of the month. While in Vietnam, GPPS Injection offers from a local producer captured firmer by $10/ton compared to a month earlier following the uptrend in crude oil and SM prices. Similar price trend continued going into June as the Southeast Asia market stabilized and tended to soften with news coming from Malaysia that on the week starting June 15, HIPS Injection for June delivery and July shipment allocation had been sold out with offers captured between $970-1,000/ton-level. A Vietnamese producer was only offering GPPS Injection to regular customers with limited quantities at $20-30/ton higher on a weekly comparison. Finally, the Thailand market recorded fresh local offers at THB34,000/ton ($1,087/ton) on the final day of June after going flat throughout the month.
From the import market, April shipment offers for South Korean GPPS and HIPS cargoes via a trader in Indonesia dropped significantly by $120/ton and $80/ton, respectively as compared to March shipment offers. Going into the first half of May, fresh import PS offers were scarce in the Southeast Asia market although Indonesian traders informed SSESSMENTS.COM about Southeast Asian GPPS Injection offers at $830/ton on LC at sight, CIF Indonesia Main Port basis. While for Taiwanese GPPS Injection cargoes, import offers to the Vietnam market were at $825-835/ton on LC at sight, CIF Main Port basis. As for import HIPS Injection cargoes, May shipment deals for HIPS Injection of Taiwan origin to Vietnam via traders were concluded between $930-940/ton with the same payment and delivery terms. Despite one of the Taiwanese PS producers halted their production for GPPS Injection and some grades of HIPS Injection since May, the company was still selling the remaining stocks to the Malaysia market up until June. June shipment offers for GPPS Injection were reported stable, while HIPS Injection recorded up by $50/ton as compared to May shipment offers. The producer also continued to raise HIPS Injection offers by $30/ton for July shipment offers, which according to market players, did not match the sluggish demand. South Korean PS cargoes also underwent a rollercoaster trend throughout June while overall import transactions remained limited in the Southeast Asia market as local PS prices were considered more competitive.
In general, SSESSMENTS.COM noted that Q2 2020 demand for PS resins in the region was subdued due to lockdown and restrictions imposed to contain COVID-19 outbreak. In Malaysia, the PS market was muted due to the Movement Control Order (MCO) from April 12 until May 12. During the MCO, most traders did not have permission to run the business, hence, they were unable to deliver customers' orders. Most manufacturers in Indonesia were only running at 30-40% from normal rates amid large-scale social restrictions while some others halted the production activities. Buyers in Indonesia, Malaysia, and the Philippines preferred to halt procurements or only purchase on a need-basis due to the slow demand for finished products. Moreover, approaching the end of May, trading activities were mostly flat due to the Eid Al-Fitr holiday in Indonesia and Malaysia. In contrast, after the government eased nationwide lockdown in Vietnam from April 22, trading activities in the country gradually picked up and the market was active. As such, healthy demand was recorded in the Vietnam market throughout May. Vietnam then became a leading country seeing their PS resin demand recover going into June after being able to deal with a coronavirus outbreak in the country while the other Southeast Asian countries remained slow. No significant supply issue was reported during the quarter.
For the outlook, market players shared with SSESSMENTS.COM that local and import PS prices will be stable entering Q3 2020 in line with stable SM prices. As for demand, buyers remain unsure of the outlook due to uncertainties in the market on the back of the fears of the second wave of coronavirus outbreak.
Range of local/localized PS transactions in April on FD basis, all excluding VAT
| Origin | Product | Transaction Type | Currency | Offers/ton | Equivalent in USD/ton | Payment Term | Delivery Country |
|---|
| Indonesia | GPPS Injection | Offer Given | IDR | 17,500,000 | 1,213 | 30 Days Credit Term | Indonesia |
| Indonesia | GPPS Injection | Offer Given | IDR | 15,800,000-17,000,000 | 1,095-1,178 | Cash In Advance | Indonesia |
| Indonesia | GPPS Injection | Offer Given | USD | 1,040-1,080 | - | Cash In Advance | Indonesia |
| Indonesia | GPPS Injection | Offer Received | IDR | 18,300,000 | 1,268 | 60 Days Credit Term | Indonesia |
| Indonesia | GPPS Injection | Offer Received | IDR | 17,000,000 | 1,178 | 90 Days Credit Term | Indonesia |
| Indonesia | GPPS Injection | Offer Received | IDR | 17,000,000 | 1,178 | Cash In Advance | Indonesia |
| Indonesia | GPPS Injection | Purchased | IDR | 16,800,000 | 1,164 | Cash In Advance | Indonesia |
| Indonesia | GPPS Injection | Sell Idea | IDR | 17,500,000 | 1,213 | 30 Days Credit Term | Indonesia |
| Indonesia | GPPS Injection | Sell Idea | USD | 950-970 | - | Cash In Advance | Indonesia |
| Indonesia | GPPS Injection | Sold | IDR | 17,500,000 | 1,213 | Cash In Advance | Indonesia |
| Thailand | GPPS Injection | Offer Received | IDR | 18,000,000 | 1,247 | 60 Days Credit Term | Indonesia |
| Thailand | GPPS Injection | Offer Received | IDR | 17,000,000 | 1,178 | 90 Days Credit Term | Indonesia |
| Vietnam | GPPS Injection | Offer Given | USD | 880-1,000 | - | Cash In Advance | Vietnam |
| Vietnam | GPPS Injection | Sold | USD | 880 | - | Cash In Advance | Vietnam |
| Indonesia | HIPS Injection | Offer Given | IDR | 18,500,000 | 1,282 | 30 Days Credit Term | Indonesia |
| Indonesia | HIPS Injection | Offer Given | IDR | 16,800,000-18,500,000 | 1,164-1,282 | Cash In Advance | Indonesia |
| Indonesia | HIPS Injection | Offer Given | USD | 1,100-1,140 | - | Cash In Advance | Indonesia |
| Indonesia | HIPS Injection | Offer Received | IDR | 19,300,000 | 1,337 | 60 Days Credit Term | Indonesia |
| Indonesia | HIPS Injection | Offer Received | IDR | 18,000,000 | 1,247 | 90 Days Credit Term | Indonesia |
| Indonesia | HIPS Injection | Offer Received | IDR | 18,000,000 | 1,247 | Cash In Advance | Indonesia |
| Indonesia | HIPS Injection | Sell Idea | IDR | 18,500,000 | 1,282 | 30 Days Credit Term | Indonesia |
| Indonesia | HIPS Injection | Sell Idea | USD | 1,020-1,040 | - | Cash In Advance | Indonesia |
| Thailand | HIPS Injection | Offer Received | IDR | 19,550,000 | 1,355 | 60 Days Credit Term | Indonesia |
| Thailand | HIPS Injection | Offer Received | IDR | 18,000,000 | 1,247 | 90 Days Credit Term | Indonesia |
Range of import PS transactions in April on LC at sight, CIF Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Country |
|---|
| Singapore | GPPS Injection | Offer Received | 920-970 | Indonesia |
| South Korea | GPPS Injection | Offer Given | 860 | Indonesia |
| South Korea | GPPS Injection | Sell Idea | 830 | Indonesia |
| Vietnam | GPPS Injection | Sold | 860 | Myanmar |
| Vietnam | GPPS Injection | Bid Received | 850 | Southeast Asia |
| Vietnam | GPPS Injection | Offer Given | 920 | Southeast Asia |
| Vietnam | GPPS Injection | Sold | 860-870 | Southeast Asia |
| Vietnam | GPPS Injection | Sold | 860 | Thailand |
| Vietnam | GPPS Injection | Purchased | 820 | Vietnam |
| South Korea | HIPS Injection | Offer Given | 1,000 | Indonesia |
Range of export PS transactions in April on LC at sight, FOB Vietnam basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Vietnam | GPPS Injection | Offer Given | 830-900 |
Range of local/localized PS transactions in May on FD basis, all excluding VAT except in VND term includes 10% VAT
| Origin | Product | Transaction Type | Currency | Offers/ton | Equivalent in USD/ton | Payment Term | Delivery Country |
|---|
| Indonesia | GPPS Injection | Offer Given | IDR | 15,000,000 | 1,039 | 30 Days Credit Term | Indonesia |
| Indonesia | GPPS Injection | Offer Given | IDR | 15,000,000-16,500,000 | 1,039-1,143 | Cash In Advance | Indonesia |
| Indonesia | GPPS Injection | Offer Received | IDR | 16,000,000-16,600,000 | 1,109-1,150 | 90 Days Credit Term | Indonesia |
| Indonesia | GPPS Injection | Offer Received | IDR | 15,000,000-16,000,000 | 1,039-1,109 | Cash In Advance | Indonesia |
| Indonesia | GPPS Injection | Purchased | IDR | 14,500,000 | 1,005 | Cash In Advance | Indonesia |
| Indonesia | GPPS Injection | Sell Idea | IDR | 14,800,000 | 1,025 | Cash In Advance | Indonesia |
| Indonesia | GPPS Injection | Sold | USD | 950 | - | Cash In Advance | Indonesia |
| Thailand | GPPS Injection | Offer Received | IDR | 16,600,000-17,600,000 | 1,150-1,219 | 90 Days Credit Term | Indonesia |
| Vietnam | GPPS Injection | Offer Given | USD | 870-910 | - | Cash In Advance | Vietnam |
| Indonesia | HIPS Injection | Offer Given | IDR | 16,000,000 | 1,109 | 30 Days Credit Term | Indonesia |
| Indonesia | HIPS Injection | Offer Given | IDR | 16,000,000-17,500,000 | 1,109-1,213 | Cash In Advance | Indonesia |
| Indonesia | HIPS Injection | Offer Received | IDR | 17,000,000-17,600,000 | 1,178-1,219 | 90 Days Credit Term | Indonesia |
| Indonesia | HIPS Injection | Offer Received | IDR | 16,000,000-17,000,000 | 1,109-1,178 | Cash In Advance | Indonesia |
| Indonesia | HIPS Injection | Purchased | IDR | 15,500,000 | 1,074 | Cash In Advance | Indonesia |
| Indonesia | HIPS Injection | Sell Idea | IDR | 15,800,000 | 1,095 | Cash In Advance | Indonesia |
| Indonesia | HIPS Injection | Sold | USD | 1,010 | - | Cash In Advance | Indonesia |
| Singapore | HIPS Injection | Offer Received | VND | 24,000,000 | 937 | Cash In Advance | Vietnam |
| Thailand | HIPS Injection | Offer Received | IDR | 17,600,000 | 1,219 | 90 Days Credit Term | Indonesia |
Range of import PS transactions in May on LC at sight, CIF Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Country |
|---|
| Far East Asia | GPPS Injection | Buy Idea | 825-835 | Vietnam |
| Far East Asia | GPPS Injection | Offer Given | 860-870 | Vietnam |
| Far East Asia | GPPS Injection | Offer Received | 830-900 | Vietnam |
| Southeast Asia | GPPS Injection | Offer Received | 830 | Indonesia |
| Southeast Asia | GPPS Injection | Offer Received | 850-900 | Vietnam |
| Far East Asia | GPPS Injection | Purchased | 830-850 | Vietnam |
| Southeast Asia | GPPS Injection | Purchased | 830 | Vietnam |
| Far East Asia | GPPS Injection | Sold | 850-860 | Vietnam |
| Far East Asia | HIPS Injection | Offer Given | 930-940 | Vietnam |
| Far East Asia | HIPS Injection | Offer Received | 930-1,000 | Vietnam |
| Southeast Asia | HIPS Injection | Offer Received | 940 | Vietnam |
| Far East Asia | HIPS Injection | Purchased | 940 | Vietnam |
| Far East Asia | HIPS Injection | Sold | 900-940 | Vietnam |
Range of export PS transaction in May on LC at sight, FOB Vietnam basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Vietnam | GPPS Injection | Offer Given | 840-850 |
Range of local/localized PS transactions in June on FD basis, all excluding VAT except in VND term includes 10% VAT
| Origin | Product | Transaction Type | Currency | Offers/ton | Equivalent in USD/ton | Payment Term | Delivery Country |
|---|
| Indonesia | GPPS Injection | Offer Given | USD | 980-1,070 | - | Cash In Advance | Indonesia |
| Indonesia | GPPS Injection | Offer Given | IDR | 14,000,000-15,700,000 | 970-1,088 | Cash In Advance | Indonesia |
| Indonesia | GPPS Injection | Offer Given | IDR | 15,000,000 | 1,039 | 30 Days Credit Term | Indonesia |
| Indonesia | GPPS Injection | Offer Received | IDR | 14,000,000 | 970 | Cash In Advance | Indonesia |
| Indonesia | GPPS Injection | Offer Received | IDR | 15,000,000-15,700,000 | 1,039-1,088 | 90 Days Credit Term | Indonesia |
| Indonesia | GPPS Injection | Purchased | IDR | 14,000,000-16,000,000 | 970-1,109 | 30 Days Credit Term | Indonesia |
| Indonesia | GPPS Injection | Purchased | IDR | 14,900,000 | 1,032 | Cash In Advance | Indonesia |
| Indonesia | GPPS Injection | Sold | USD | 980 | - | Cash In Advance | Indonesia |
| Thailand | GPPS Injection | Offer Received | IDR | 15,900,000 | 1,102 | 90 Days Credit Term | Indonesia |
| Thailand | GPPS Injection | Offer Received | THB | 34,000 | 1,087 | Cash In Advance | Thailand |
| Taiwan | GPPS Injection | Offer Given | VND | 30,000,000 | 1,171 | Cash In Advance | Vietnam |
| Thailand | GPPS Injection | Offer Given | VND | 28,000,000 | 1,093 | Cash In Advance | Vietnam |
| Vietnam | GPPS Injection | Offer Given | USD | 910-950 | - | Cash In Advance | Vietnam |
| Vietnam | GPPS Injection | Sold | USD | 920-950 | - | Cash In Advance | Vietnam |
| Indonesia | HIPS Injection | Offer Given | USD | 1,090-1,195 | - | Cash In Advance | Indonesia |
| Indonesia | HIPS Injection | Offer Given | IDR | 15,000,000-16,700,000 | 1,039-1,157 | Cash In Advance | Indonesia |
| Indonesia | HIPS Injection | Offer Given | IDR | 16,000,000 | 1,109 | 30 Days Credit Term | Indonesia |
| Indonesia | HIPS Injection | Offer Received | IDR | 16,000,000-16,700,000 | 1,109-1,157 | 90 Days Credit Term | Indonesia |
| Indonesia | HIPS Injection | Purchased | IDR | 15,900,000 | 1,102 | Cash In Advance | Indonesia |
| Indonesia | HIPS Injection | Sold | USD | 1,150-1,155 | - | Cash In Advance | Indonesia |
| Malaysia | HIPS Injection | Offer Given | USD | 970-1,000 | - | Cash In Advance | Malaysia |
| Taiwan | HIPS Injection | Offer Given | VND | 33,000,000 | 1,288 | Cash In Advance | Vietnam |
| Thailand | HIPS Injection | Offer Given | VND | 31,000,000 | 1,210 | Cash In Advance | Vietnam |
| Thailand | HIPS Injection | Offer Received | IDR | 16,700,000 | 1,157 | 90 Days Credit Term | Indonesia |
Range of import PS transaction in June on LC at sight, CIF Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) | Delivery Country |
|---|
| Far East Asia | GPPS Injection | Offer Given | 920 | Indonesia |
| Far East Asia | GPPS Injection | Offer Given | 870-900 | Southeast Asia |
| Far East Asia | GPPS Injection | Offer Received | 865-970 | Vietnam |
| Southeast Asia | GPPS Injection | Offer Received | 980-1,000 | Vietnam |
| Southeast Asia | GPPS Injection | Offer Received | 980-1,000 | Indonesia |
| Southeast Asia | GPPS Injection | Offer Given | 900 | Southeast Asia |
| Far East Asia | HIPS Injection | Offer Given | 1,020 | Indonesia |
| Far East Asia | HIPS Injection | Offer Given | 970-1,000 | Southeast Asia |
| Far East Asia | HIPS Injection | Offer Received | 965-1,020 | Vietnam |
| Southeast Asia | HIPS Injection | Offer Given | 970-1,000 | Southeast Asia |
| Southeast Asia | HIPS Injection | Offer Received | 1,060 | Vietnam |
Range of export PS transaction in June on LC at sight, FOB Vietnam basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Vietnam | GPPS Injection | Offer Given | 900-920 |
Tags: Asia Pacific,English,Quarterly,SEA,Styrenics
Published on July 9, 2020 6:37 PM (GMT+8)
Last Updated on July 9, 2020 6:37 PM (GMT+8)
