Market Players: PS Demand In Southeast Asia Is Still Highly Affected By The Coronavirus
- Offers for import Southeast Asian GPPS Injection deemed unattractive
- Demand for PS finished product in Vietnam remains healthy
- PS prices expected to move lower in the near term
Southeast Asian market participants stated to SSESSMENTS.COM that PS demand in the region is still highly affected by the Coronavirus. On the week commencing May 11, a local producer in Vietnam adjusted up GPPS Injection offers by $10/ton compared to last week following the uptrend in SM prices. In contrast, a local producer in Indonesia adjusted down offers for GPPS Injection and HIPS Injection by IDR1,000,000/ton ($67/ton) compared to last week. Following suit, a local trader lowered GPPS Injection and HIPS Injection offers by the same amount. In the import market, an Indonesian trader received Southeast Asian GPPS Injection offers at $830/ton on LC at sight, CIF Indonesia Main Port basis. However, the trader is not interested in taking the cargoes considering the current market situation. While in Vietnam, import offers for GPPS Injection and HIPS Injection of South Korea origin moved up by $20/ton on a weekly comparison. To the export market, a Vietnamese PS producer decided to roll over GPPS Injection offers due to the slow demand in the export market. So far, no bids received yet from buyers.
Overall PS demand in Southeast Asia region is still highly affected by the Coronavirus pandemic. Limited inquiries received by an Indonesian trader as buyers prefer to skip procurements or only buying on a need basis. However, some Vietnamese converters stated that their finished product demand is healthy but still has not improved much since end-consumers limit their spending. Likewise, sales at a food packaging manufacturer in Indonesia are quite good and the production at the company’s end is still running at 90% from normal rates. On the supply side, no significant issue reported to SSESSMENTS.COM.
Looking ahead, market players opined that regardless of the SM price trend, PS prices will move lower in the upcoming week on the back of slow demand, as stated to SSESSMENTS.COM.
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