FocusAsia styrenics wane ahead of holidays

30 April 2008 09:29  [Source: ICIS news]

By Clive Ong

 

SINGAPORE (ICIS news)--Demand for styrenic resins has waned ahead of seasonal holidays across Asia, said producers and traders on Wednesday.

 

With the key Chinese market to be closed for around three days at the end of the week, trades were at a standstill. Other markets like Korea, Hong Kong and a number of southeast Asian countries will also be closed for a holiday on 1 May.

 

Most end-users had postponed purchases until after the holidays, while others had picked up parcels previously to cover manufacturing requirements during the lull, said Chinese traders of polystyrene (PS) and acrylonitrile-butadiene-styrene (ABS) resins.

 

While there was cautious optimism among some sellers that demand would pick up in the second half of May, other resin sellers anticipated a delay in the recovery of demand to July.

 

Recession fears in the US had reduced the number of orders flowing to Chinese moulders. Also, new Chinese government policies on sales and distribution of 257 chemicals to enhance the safety of the public during the Olympics had cast a pall on trades.

  

Credit control measures coupled with electricity and labour shortages had also impacted the manufacturing sector adversely.

 

Sales of expandable (E) PS were also sedate this week as buyers similarly postponed purchases.

 

“We hardly sold anything this week even at lower prices,” said a Taiwanese producer.

 

However, all is not pessimistic as sellers believed that buying interest would improve towards the middle of the year.

 

With the Chinese manufacturing sector expected to pick up in July, demand for packaging EPS should recover in June. Also, the key construction industry in eastern and northern China would enter its peak in mid-year, spurring demand for block flame retardant EPS.

By: Clive Ong
+65 6780 4359

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