Asian producers raise PS offers to Southeast Asia

Several Asian producers implemented increases on their PS offers to Southeast Asia this week on the back of firmer upstream markets.

A Vietnamese producer reported that their done deal level increased by $20-30/ton from last week for GPPS and attributed this to higher costs as well as firmer China. “We think prices will remain firm in the near term,” a source from the producer noted. The producer concluded deals at $1300-1310/ton CIF SEA, cash basis.

A Southeast Asian producer applied a weekly increase of $30/ton on its PS offers from last week. The producer’s GPPS offers are currently standing at $1350-1370/ton CIF SEA, cash basis while the done deal of HIPS injection is at $1430/ton with the same terms.

An Indonesian agent of a South Korean producer also reported that their supplier raised its offers significantly by $60/ton from last week to $1440/ton for GPPS injection and $1520/ton for HIPS injection, all on CIF Indonesia, cash basis.

“Current price levels are already standing at quite high levels and it is hard to find customers to be interested in these levels. However, the producer is not under any sales pressure and they may pull their prices higher,” the trader said.

In Asia, spot ethylene prices on Far East Asia basis are currently $245/ton higher than its early August levels. CFR China based butadiene prices and FOB Korea based styrene prices also increased by around $290/ton and $75/ton respectively within the same period.