SE Asian PS producers keep low operating rates

19 July 2006 10:30  [Source: ICIS news]

SINGAPORE (ICIS news)--Producers of polystyrene (PS) in Southeast Asia have maintained low operating rates amid persistently weak demand since May, industry sources said on Wednesday.

Traders of PS said one of the reasons for the slow demand was volatile energy and feedstock styrene monomer (SM) values. The constant gyrations of SM prices have made PS buyers hesitant and many adopted a wait-and-see stance.

Also, moulders in China said the bulk of the orders for finished goods have not arrived from the US and Europe yet. However, they are optimistic of renewed demand in August when the manufacturing season begins.

Operating rates at Singapore’s Total Petrochemicals’ 75,000 tonnes/year high impact PS (HIPS) facility and Denka’s 150,000-200,000 tonnes/year general purpose PS unit remained around 60% of capacity, according to industry sources.

Operating rates at Idemitsu Malaysia’s 140,000 tonnes/year unit in Pasir Gudang, Johor state, were reduced further to 50%, from 70% in first half July.

By: Clive Ong
+65 6780 4359

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