28 March 2013 09:33 [Source: ICIS news]
SINGAPORE (ICIS)--Polystyrene (PS) producers in the Gulf Cooperation Council (GCC) region have dropped their April offers to the regional markets by $50-100/tonne (€39-78/tonne) from March, market sources said on Thursday.
According to sources, a significant fall in feedstock styrene monomer (SM) prices in mid-March has contributed to the lower prices for April-loading cargoes.
Offers of general purpose PS (GPPS) were at $1,980-1,990/tonne DEL (delivered) GCC for April-shipping cargoes, fell from $2,030-2,040/tonne DEL GCC in March.
Prices of high impact PS (HIPS) for April shipments dropped by $100/tonne from March to $2,130-2,140/tonne DEL GCC.
Traders and converters in the East Mediterranean (East Med) markets are awaiting PS offers from the GCC producers, and are likely to receive the prices on 30 March.
According to a Jordan-based trader, the GCC producers’ PS offers to East Med markets are usually $30-40/tonne more than the prices seen in GCC.
The trader expects GPPS offers to be at $2,010-2,020/tonne DEL East Med, while HIPS could be priced at $2,170-2,180/tonne DEL East Med for April-shipping lots.
Demand in the Middle East region was heard to be largely subdued during the week, as most buyers waited for offers from the GCC producers before booking Asian cargoes.
Buyers’ response to the offers is still pending, although some regional traders are of the opinion that the announced prices are still significantly higher than Asian offers for April shipments.
An importer based in United Arab Emirates (UAE) consequently expects many buyers to opt to source product from Asia since the price gap between regional and Asian offers is quite significant.
Asian cargoes for loading in early April were offered to the GCC and East Med markets at $1,870-1,910/tonne CFR (cost & freight) Middle East, while those for HIPS cargoes were at $1,970-2,000/tonne CFR Middle East, with a few deals heard concluded at similar prices.
Offers quoted on a DEL basis have an additional cost of $50/tonne included to the CFR prices that accounts for finance and clearing charges and land freight costs.
($1 = €0.78)
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