Southeast Asia PS Market Remained Quiet Amid Lockdown Relaxation, Import Offers Scarce
- Local PS offers from trader in Indonesia showed significant gap with producer’s offers
- Trend in SM prices did not affect buying sentiment in PS market
- PS market will remain slow in the near term
As informed to SSESSMENTS.COM, the Southeast Asia PS market remained quiet amid lockdown relaxation in several countries. In the domestic market, GPPS Injection and HIPS Injection offers from a local trader in Indonesia are available at IDR16,500,000/ton ($1,090/ton) and IDR17,500,000/ton ($1,156/ton), respectively on cash, FD Indonesia basis and excluding 10% VAT. These offers are IDR500,000/ton ($33/ton) higher compared to producer’s offers. While in Vietnam, local GPPS offers from a local producer decreased by $10/ton on a weekly comparison. In the import market, no fresh offers were recorded in the Southeast Asia market. A trader in Indonesia stated that there is no point to keep offering import cargoes this week as the PS market in the country is quiet. Likewise, in Vietnam, no fresh offers were captured. For the export market, offers for Vietnamese GPPS Injection cargoes remain unchanged from last week and stand at $840/ton on LC at sight, FOB Vietnam basis.
Overall PS demand in the Southeast Asia market remains subdued over the week, except in Vietnam. Healthy demand recorded in the Vietnam market compared to last week. In contrast, the uptrend in SM prices did not affect the PS market in other countries as buyers prefer to halt procurements due to the slow demand for finished products. Moreover, during Ramadhan (fasting month), the demand for cookie jar at an Indonesian converter’s end decreased significantly compared to last year. However, a local trader in Indonesia stated that PS demand from the company’s end remains healthy as buyers start to stock up for Eid Al-Fitr preparation. On the supply side, no significant issue reported to SSESSMENTS.COM.
Looking ahead, Southeast Asian market players opined to SSESSMENTS.COM that the PS market will remain slow in the near term as most businesses will need time to recover. In terms of pricing, PS prices are expected to be at least stable following the firmer SM and crude oil prices.
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