GPPS trading at a discount to homo-PP in SEA
One year ago, the premium for GPPS over homo-PP was still hovering above the $250/ton threshold and the premium remained above $100/ton as late as the end of August. However, the last few weeks have seen the two products trading close to par and GPPS prices actually began at a discount to homo-PP this week after some regional sellers implemented significant reductions on their PS prices this week.
A Southeast Asian producer lowered their GPPS prices by $90-100/ton to $1360-1380/ton CIF, cash while complaining they are struggling to conclude deals even after agreeing to their most recent decreases. Meanwhile, a Thai producer said that they lowered their GPPS prices by $50/ton to $1450/ton CIF, cash while implementing a smaller decrease of $30-40/ton to $1490/ton for homo-PP injection and raffia. Polymer prices are general are softening in line with slumping upstream costs and most buyers are keeping to the sidelines these days,” a source from the Thai producer stated.
A trader in Vietnam commented, “GPPS prices are as competitive as homo-PP cargoes in terms of price following the most recent reductions from Asian sellers.” Another player added, “GPPS demand has been stagnant for some time now and many converters have switched from GPPS to other polymers such as homo-PP to better manage their costs. The recent drop in GPPS prices may allow PS to win back market share in inter-polymer competition.”
Import prices to Southeast Asia currently stand at $1295-1450/ton for GPPS and at $1310-1490/ton for homo-PP injection and raffia, all on a CIF SEA, cash equivalent basis.
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