21 December 2011 11:22 [Source: ICIS news]
The average operating rate has been 40–45% of full capacity since the beginning of December, while it was above 50% in November, according to data from ICIS China.
Demand from the construction sector in northern
As a consequence, EPS sellers have seen reduced sales, said one producer in
“We are suffering losses these days because of high costs,” one major domestic EPS producer added.
He said the styrene monomer (SM) spot price is about yuan (CNY) 9,900/tonne, and the price of general grade EPS is CNY10,500–10,600/tonne, a difference of about CNY600–700/tonne, but the normal production cost of EPS is at least CNY800/tonne.
Both difficult sales and high costs have put Chinese EPS producers in a dilemma, industry sources said.
They can’t reduce prices further because of high costs, and also face difficulty in raising prices to cover losses because of extremely poor demand.
And demand will be weaker in the near term because of the upcoming Lunar New Year Holiday, market players said.
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