Asia EPS surges $50/tonne to record high

20 May 2008 08:07  [Source: ICIS news]

SINGAPORE (ICIS news)--Spot prices of expandable polystyrene (EPS) in Asia have risen $50/tonne in a week to reach an 11-year high on the back of record crude and firm feedstock styrene monomer (SM) numbers, market players said on Tuesday.

 

“Sellers have no choice but to increase prices, or our margins would be severely eroded,” said a Taiwanese producer.

 

Spot prices of packaging grade EPS had risen $50/tonne within a week to reach a record of $1,610-1,630/tonne CFR (cost and freight) China late last week, according to global chemical intelligence service ICIS pricing. 

 

The previous record high was reached in October of 2004 was at $1,570-1,590/tonne CFR China.

 

Prices had further upside potential, given that SM values showed little signs of easing anytime soon, suppliers said.

 

However, most sellers remained concerned escalating prices could derail end-user demand which had recently improved.

 

“Customers showed resistance towards prices above $1,600/tonne CFR China, as the $50/tonne jump in a week had caught them by surprise,” said a supplier in China.

 

Major EPS producers in northeast Asia include Loyal Group, Ming Dih Group, Taita Chemical and Wuxi Xingda Foam Plastics.

 

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By: Clive Ong
+65 6780 4359

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