FocusAsia EPS higher on firm feedstock

19 March 2008 06:41  [Source: ICIS news]

By Clive Ong

SINGAPORE (ICIS news)--Prices of expandable polystyrene (EPS) resins in Asia remain on an uptrend as feedstock styrene monomer (SM) values stay firm, producers said on Wednesday.

Sellers hiked offers over the past few weeks to match the surge in crude and SM prices, with packaging grade parcels sold around $1,540-1,550/tonne (€986-992/tonne) CFR (cost and freight) China and Hong Kong this week.

“However, despite higher prices, our margins are still squeezed,” said a Taiwanese producer, indicating that normal margins should be around $180/tonne over SM prices.

“At current levels, we are only achieving about a $120/tonne spread over SM prices,” he added.

Forced by the margin squeeze, most sellers continue to target higher prices but conceded that buyers were slow to increase buying indications. Demand is expected to gather momentum in April as more Chinese factories ramp up production.

“To fully reflect the SM costs, most sellers would need to sell at $1,600/tonne FOB (free on board) Asia or around $1,620/tonne CFR China,” another Taiwanese producer said.

Suppliers added that current prices were within range of equalling their ten-year high record, set in August 2004 at $1,570-1,580/tonne CFR China.

($1 = €0.64)

By: Clive Ong
+65 6780 4359

< previous article(VIDEO - ICIS news Europe Lunchtime Bulletin 30 October 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly