Asia polystyrene prices stagnate while ABS remains on uptrend

27 October 2010 05:44  [Source: ICIS news]

SINGAPORE (ICIS)--Spot prices of polystyrene (PS) and expandable (EPS) have stagnated this week as demand in the key Chinese market slowed down because peak manufacturing season for exports had come to an end, traders and producers said on Wednesday.

“Fixtures in recent weeks were mostly for small lots as buyers bought on a need-to basis,” said a trader in Hong Kong.

With the recent pull back in feedstock styrene monomer (SM) prices to below $1,300/tonne (€936/tonne) CFR (cost and freight) China, sentiment among PS and EPS players was further dampened.

“Buyers now expect resin prices to decline and hence were hesitant to commit to purchases,” said a producer in Taiwan.

Spot values of general purpose (GP) PS and EPS hovered around $1,400/tonne CFR China and Hong Kong, little changed from last week, according to ICIS data.

PS is used in the packaging, consumer electronics and toys sectors, while EPS is used in packaging and infrastructure sectors.

Meanwhile, in contrast to weak PS markets, acrylonitrile-butadiene-styrene (ABS) prices remained firmly on an uptrend.

Tight availability and ample demand continued to spur prices higher. ABS prices rose to around $2,150/tonne CFR China this week, up from $1,960/tonne CFR China a month ago.

“Some suppliers had sold out November cargoes, so the market is likely to remain tight in the near term,” said a trader in Hong Kong.

While the Chinese exports sector had slowed, domestic demand for ABS appeared firm and sellers believed that it could sustain prices of the resin in the weeks ahead.

“Producers in Taiwan and South Korea had placed customers in China and Hong Kong on allocation, as supply was limited,” said another trader in Hong Kong.  

“Producers, particularly those in Korea, have not much resins for exports after catering to their own domestic market,” said an ABS producer in northeast Asia.

ABS is used in the automotives, office equipment, personal computers and consumer electronics sectors.

($1 = €0.72)

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By: Clive Ong
+65 6780 4359

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