08 March 2013 09:24 [Source: ICB]
Polystyrene (PS) producers in the Gulf Cooperation Council (GCC) region have rolled over their offer prices to the Middle East markets for March from February, market sources said.
A continued firmness in feedstock styrene monomer (SM) prices led the PS makers to maintain higher PS offers for March-shipping cargoes, they added.
Offers for general purpose PS (GPPS) were stable from February at $2,030-2,040/tonne (€1,543-1,550/tonne) DEL (delivered) GCC for March-loading cargoes.
High impact PS (HIPS) cargoes were steady at $2,230-2,240/tonne DEL GCC for March shipments.
March offers to the East Mediterranean (East Med) markets stood at $2,050/tonne DEL East Med for GPPS and $2,270/tonne DEL for HIPS respectively, unchanged from February prices.
PS prices in the region have been on a steady uptrend since August 2012, on account of high styrene monomer (SM) prices.
Consequently, most Middle East PS converters preferred to purchase on a requirement basis, instead of building up stocks.
Styrene prices in China were assessed at $1,715-1,725/tonne CFR China on 27 February.
However, unlike GCC producers who have rolled over their offers, the Asian PS producers have targeted a $20-30/tonne increase in PS offers for March over February to account for the high styrene monomer (SM) prices.
LIMITED DEMAND IN GCC
PS demand in the GCC as well as East Med regions continues to be strictly on a need-to basis, amid the high PS offer prices.
In the East Med markets, the GCC producers' offers for March-shipping cargoes drew lukewarm response on account of the high offer prices.
Additionally, a number of converters were heard to be considering to substitute HIPS with alternatives like polypropylene (PP) for applications such as disposable containers.
"Packaging applications can use PP, which today is almost $500/tonne cheaper than HIPS, and converters want to look at substituting HIPS with PP," a regional trader said.
Injection-grade PP prices in the Middle East markets were at $1,560-1,620/tonne CFR Middle East, while film-grade PP was traded at $1,580-1,640/tonne CFR Middle East, in the week ended 22 February.
A continued firmness in PS offers has forced Middle East converters to look for alternatives.
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