EPS prices mostly steady despite higher styrene
Prices of Asian expandable polystyrene (EPS) were largely stable for the week ended Friday, despite feedstock styrene monomer (SM) prices surging above $1,500/tonne CFR China.
End-users were non-committal, after picking up some parcels in recent weeks. Most were not keen to raise inventories, in view of the ongoing debt crisis in the eurozone and the US. Concerns that demand for China-made goods could decline curbed trade in the EPS market.
At the same time, the Chinese government’s tight monetary policy stance also dampened trades and made exports less competitive. The domestic infrastructure and construction industry, which is dependent on credit, is expected to soften amid the credit tightening.
EPS operating rates in China were estimated at 60-65%, up from 60% last week. In eastern China, domestic prices were firmer at yuan (CNY) 12,900-13,100/tonne DEL for packaging resins and CNY13,800-14,100/tonne DEL for block flame retardant (FR) types.
In southern China, local values were higher at CNY12,800-13,100/tonne DEL for packaging ESP and CNY13,800-14,100/tonne DEL for FR grades.
Spot
Offers of packaging grade resins were quoted at $1,660-1,680/tonne CFR China and Hong Kong but failed to draw much buying interest. Buying indications were cited lower at $1,630-1,640/tonne CFR China and Hong Kong. However, sellers were mostly not willing to sell at this level, citing elevated SM prices.
Offers of FR EPS were around $80/tonne higher at $1,740-1,760/tonne CFR China and Hong Kong. Sellers similarly reported limited buying interest at this level.
Export offers the Europe were heard at $1,670-1700/tonne FOB Asia for packaging EPS and $1,750-1,780/tonne FOB Asia for RF grades. Few deals were heard concluded this week. Offers to the Middle East have become limited ahead of the Ramadan fasting month starting in early August.
In Taiwan, offers for packaging resins were quoted at Taiwan New dollar (NT$)50/kg DEL, unchanged from last week. Fixtures remained at NT$49/kg DEL.
In southeast Asia, offers of packaging EPS were at $1,670-1,690/tonne CFR to weak buying momentum. Buying interest has waned ahead of the Ramadan fasting month, seller said. Some buying ideas were heard in the low-to-mid $1,600s/tonne CFR SE Asia but fixtures were few.
($1=CNY6.44)
($1=NT$28.82)
This week in ICIS news ( www.icisnews.com):
28-Jul-11 11:30 China’s Shida Shenghua Chemical to start up new propylene unit
28-Jul-11 10:58 China’s Yanshan Petrochemical to shut cracker, derivative units mid-Aug
28-Jul-11 10:17 LANXESS starts operation at expanded Wuxi plastics plant 29 July
28-Jul-11 09:57 South Korea’s YNCC offers 3,000 tonnes MTBE for August
28-Jul-11 09:20 China’s Yanshan Petrochemical to start up rubber plant by late 2012
