24 October 2012 08:50 [Source: ICIS news]
SINGAPORE (ICIS)--A number of PS producers have raised their offers by $30-40/tonne (€23-31/tonne) this week amid muted buying interest, market sources said on Wednesday.
Offers were quoted at $1,690-1,730/tonne CFR (cost and freight) ?xml:namespace>
Crude futures are currently trading below $88/bbl, while SM prices tumbled by about $50/tonne this week to $1,550/tonne CFR China as the market entered a lull season.
“The offers are higher but there is no business done,” said a trader in
Manufacturing of finished goods in the key
With SM prices declining this week, traders expect PS buyers to reject the proposed higher prices. Most end-users are also contented to hold low resin inventories amid slower production.
Offers of high-impact PS (HIPS) were largely stable from last week’s at $1,850-1,900/tonne CFR China.
HIPS values might have reached an impasse temporarily as competing product acrylonitrile-butadiene-styrene (ABS) prices were at around $1,950/tonne CFR China. Usually, ABS prices lead HIPS by around $300/tonne but poor demand caused ABS prices to languish below $2,000/tonne CFR China.
ABS has higher impact strength than HIPS.
“The price of ABS has capped HIPS values as the spread is now so narrow that buyers of HIPS could essentially buy ABS instead,” said a trader in
PS is used in packaging, toys, consumer electronics and other consumer items.
($1 = €0.77)
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