28 February 2014 03:58 [Source: ICIS news]
SINGAPORE (ICIS)--Prices of March-shipping Middle East-origin polystyrene (PS) cargoes fell by $30/tonne as a regional producer dropped its offers for March shipments, market sources said late on Thursday.
Offers fell in tandem with the sharp decline in feedstock styrene monomer (SM) prices in February.
The regional PS producer offered March shipping general purpose PS (GPPS) cargoes to the Gulf Cooperation Council (GCC) region at $1,890/tonne DEL (delivered) GCC, down from $1,920/tonne DEL offered for February shipments.
Offers for high impact PS (HIPS) cargoes were at $2,040/tonne DEL GCC, also down by $30/tonne compared with the prices for February cargoes.
However, the regional producer’s offers for March were deemed high as compared with import offers from Asia. Asian GPPS cargoes were offered to the region at $1,810-1,820/tonne CFR (cost & freight) GCC, while offers for HIPS ranged at $1,840-1,870/tonne CFR GCC.
March offers to the East Mediterranean (East Med) markets are pending, and are likely to be made in the following week. However, market sources expected a drop in offers on the back of the recent fall in SM prices.
February-loading GCC-origin GPPS cargoes were offered to the East Med region at $1,920/tonne DEL East Med, while HIPS lots were offered at $2,100/tonne DEL East Med.
GCC producers’ offers are quoted on a DEL basis that include all costs incurred in delivering the cargoes to the customer’s facility. Imported cargoes, on the other hand, are quoted on a CFR basis and are subject to an additional cost of around $50/tonne for port clearing, financing and land freight.
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