PS Demand Condition In Southeast Asia Remained Dull, Traders Adjusted Offers To Move Out Inventory
- Indonesian traders adjusted PS offers amid demand condition
- Buyers are still not keen to make purchases amid the uncertainties in the market
- Buyers will still adopt a wait-and-see stance in the near term
Southeast Asian market players stated to SSESSMENTS.COM that since PS demand condition in the region remained dull, some traders adjusted PS offers to move out inventory. On the week commencing June 22, local GPPS Injection and HIPS Injection offers in the region recorded stable to softer. In Indonesia, some traders trimmed local PS offers between IDR300,000-700,000/ton ($21-49/ton) depending on the grades compared to last week’s level following slow PS demand in the country. In contrast, a local PS producer adjusted up July delivery offers by $50/ton from June delivery. Meanwhile, a Vietnamese producer only offers GPPS to regular customers with limited quantities at $20-30/ton higher compared to a fortnight ago, after sold-out July delivery allocation last week. In the import market, a trader is offering July shipment offers for South Korean GPPS and HIPS to Indonesia at $920/ton and $1,020/ton, respectively on LC at sight, CIF Main Port basis. However, so far, no responses yet as the offers could not compete with local prices. For South Korean cargoes, GPPS and HIPS offers to Vietnam moved down by $40/ton on the weekly comparison.
As informed to SSESSMENTS.COM, no improvement was seen for PS demand in Southeast Asia over the week. Buyers are still not keen to make procurements amid the uncertainties in the market. In Indonesia, traders are lowering PS prices in order to clear out inventory to get cash as soon as possible. Moreover, sales at a trader’s end are only 20-30% from normal sales. However, the new normal transition in Jakarta has supported finished product sales. A manufacturer stated that finished product demand at the company’s end is improving even though it could not be categorized as strong yet and the production is currently running at full capacity. On the supply side, no significant issue was reported.
For the outlook, market players opined that local and import PS prices will be stable in the upcoming weeks in line with stable SM price. As for demand, amid uncertainties in the market due to the fear of the second wave of coronavirus, buyers will still adopt a wait-and-see stance in the near term, as stated to SSESSMENTS.COM.
