Some Traders Attempted To Adjust PS Offers, In Contrast With Demand Condition
- A local PS producer in Indonesia sold out all July allocation
- Overall PS market in Southeast Asia remains weak over the week
- Slow PS demand predicted to last until the end of the year
As informed to SSESSMENTS.COM, some traders in Southeast Asia attempted to adjust GPPS Injection and HIPS Injection offers, in contrast with demand conditions. In the domestic market, a local producer in Vietnam maintained stable offers for GPPS Injection compared to last week and managed to sell some volumes at the same level to the initial offers at $950-960/ton on cash, FD Vietnam basis and excluding 10% VAT. Whereas in Indonesia, a local producer has sold out all PS allocation for July delivery with deals concluded to distributors at $30/ton lower than the initial offer level. Via traders, some decided to roll over GPPS and HIPS offers from last week, while some increased local offers for both grades between IDR100,000-800,000/ton ($7-55/ton) compared to a fortnight ago. For import cargoes, offers for South Korean GPPS and HIPS to Indonesia captured stable. Similarly, GPPS Injection offers from a Taiwanese producer to Vietnam also stable, while HIPS Injection offers from the producer were trimmed by $20/ton since the previous offers were deemed too high and unworkable. While for Vietnam origin, deals for GPPS to Indonesia and Philippines market concluded at $920/ton on LC at sight, CIF Main Port basis. To the export market, August shipment offers for GPPS from a Vietnamese producer remain unchanged from last week at $920/ton on LC at sight, FOB Vietnam basis.
Overall PS market in Southeast Asia remains weak over the week. No significant improvement for PS demand was seen as most buyers only purchase on a need basis or cease procurements on the back of sufficient inventory on-hand. Likewise, some players stated that healthy demand was only seen for essential products, while demand for other products, such as agriculture containers remains slow. However, a local producer in Indonesia mentioned that PS demand in the local and export market at the company’s end is quite strong. On the supply side, there were no issues reported to SSESSMENTS.COM during this week.
For the outlook, Southeast Asian market players opined that local PS offers in the region will be stable at the current level following stable SM price movements. As for demand, slow PS demand predicted to last until the end of the year as finished product demand remains weak due to the COVID-19 pandemic, as stated to SSESSMENTS.COM.
