Lower EPS prices fail to spur demand, bearish Q4

01 October 2008 07:39  [Source: ICIS news]

SINGAPORE (ICIS news)--Sales of expandable polystyrene (EPS) resins in the fourth quarter are likely to be dismal due to weak global demand, EPS suppliers said on Wednesday

 

Suppliers had dropped offers by $150/tonne in the past month to $1,550/tonne CFR (cost and freight) China but buyers refused to be drawn forward.

 

Demand is unlikely to pick up in Q4 despite lower prices as the downtrend in crude and feedstock styrene monomer (SM) had prompted most EPS buyers to retreat to the sidelines, believing that prices had more room to decrease, said producers on Wednesday.

 

Demand in the key Chinese market was expected to slow down further by November when colder weather sets in, sources said.

 

The construction sector in northern and western China would start to slow and reduce consumption for block flame retardant EPS, which is used as insulation panels in buildings and roads.

 

Export demand to Europe and Middle East was also expected to slow down.

 

With Europe also battling the credit crisis in the wake of the US housing market, demand for Asian EPS had been weak since the third quarter, producers in Taiwan said.

 

Meanwhile, demand from the Middle East had also waned in September, ahead of the Eid al-Fitr festivities, industry sources said.

 

For more on EPS visit ICIS chemical intelligence
To discuss issues facing the chemical industry visit ICIS connect

By: Clive Ong
+65 6780 4359

< previous article(VIDEO - ICIS news Asia Lunchtime Bulletin 28 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