22 November 2011 09:25 [Source: ICIS news]
By Rita Wu
Spot prices for general grade EPS were at yuan (CNY) 11,200-11,300/tonne ($1,761-1,777/tonne) on Tuesday, down by almost CNY 2,000/tonne, or 15%, from the beginning of August, according to Chemease, an ICIS service in
Over the same period, prices of feedstock styrene monomer (SM) declined a steeper 18% to CNY9,800/tonne on Tuesday, Chemease data showed.
EPS is used mainly for packaging in the eastern and southern regions of
Demand for EPS has significantly weakened at the onset of the winter season in the fourth quarter, when construction activities slow down in the northern regions.
EPS producers complained of difficulty selling products.
“We find [it] more and more difficult to sell,” said an EPS producer.
“It seems that the winter for
In the packaging sector, demand for EPS has also been lacklustre since the start of the year, and even got worse in the second half, as production of downstream home appliances have slowed down.
Manufacturers of home appliances, such as refrigerators and washing machines in southern
“We have no interest to buy or sell goods, especially in such a soft market,” a trader said.
Falling demand has been prompting EPS makers to either cut production or shut down plants to prevent inventories from building up too much, industry sources said.
“We cannot get any support from the upstream styrene monomer (SM) market also, because the SM is [also] on its way down,” said an industry source.
A downturn in
($1 = CNY6.36)
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