Zero Demand Improvement Recorded As Southeast Asia PS Market Petrified
- A Malaysian producer sold out July shipment allocation
- Demand remains sluggish in general
- Players foresee a possibility for local PS prices to decline
Market sources reported to SSESSMENTS.COM that there is no demand improvement recorded as Southeast Asia PS market petrified. In Indonesia, offers for local GPPS Injection and HIPS Injection were recorded stable. The offers recorded between IDR15,000,000-15,700,000/ton ($1,054-1,103/ton) for GPPS Injection and between IDR16,000,000-16,700,000/ton ($1,124-1,174/ton) for HIPS Injection depending on the payment term, FD Indonesia basis, and excluding 10% VAT. Meanwhile, there were no fresh offers recorded in the Thailand market as most customers already booked sufficient volume in early June. Sources added that a local producer in Malaysia informed that HIPS Injection for June delivery and July shipment allocation has been sold out, hence, there are no offers for this week. Likewise, June delivery and July shipment allocation for GPPS Injection from a local producer in Vietnam also sold out. From the import market, the offers for South Korean and Thailand GPPS Injection to Vietnam increased by $40/ton and $20/ton respectively. While for import South Korean HIPS Injection to Vietnam, the offers were kept stable. All on a weekly comparison
In general, demand for PS in Southeast Asia remains sluggish. As reported to SSESSMENTS.COM, demand for PS resins from food packaging, home appliances, and automotive sector in Indonesia remains slow. Moreover, players are more concerned about the possibility of a second wave of Coronavirus pandemic. Sources added that there is no significant demand improvement as well in Malaysia, hence, the operating rate from the downstream factories are kept at a low rate. Similarly, sellers in Vietnam observed no significant changes in demand compared to last week as buyers have sufficient inventory on hand. Meanwhile, in Thailand, buyers already secure some quantities in early June. On the supply side, there are no issues reported.
Pertaining to the outlook, market sources opined to SSESSMENTS.COM players will most likely remain on a wait-and-see stance in the near term due to the uncertainties in the market. As such, local PS prices predicted to move lower.
