Updated to mid-November 2009
Asian market review by Clive Ong, ICIS pricing
Spot prices of packaging expandable polystyrene (EPS) reached $1,290/tonne CFR (cost and freight) China in the second half of August as the Chinese manufacturing demand season was in full swing.
By September, however, business activities tapered off ahead of the long Chinese National Day holidays in early October. As a result, prices dipped below $1,250/tonne CFR China in September.
After the Chinese holidays, the downtrend in prices continued with spot values falling below $1,200/tonne CFR China. The Chinese export season had largely ended in October while resin sales to Europe and the Middle East were also weak. Prices hovered around $1,165/tonne CFR China in November as trades slowed down further with the arrival of the year-end holidays.
European market review by Peter Gerrard, ICIS pricing
At the beginning of September, most players in the European EPS market saw an improvement in demand. This included some optimism in Germany about possible increased demand from the white goods sector.
Prices of EPS in the European market settled down by approximately €30/tonne in September. Producers had begun by targeting a rollover but, as the month progressed, this aspiration was clearly not attainable. Sellers therefore conceded reductions that mainly varied from minus €20/tonne to minus €50/tonne. However, with an €84/tonne fall in the styrene monomer price, this meant that, for the second month in succession they could effect some improvement to their margins.
In October, values slipped back a further €30/tonne, on average, although some said that the eventual reduction for them was closer to €50/tonne. Improved demand in a number of countries, particularly in central and eastern Europe, was reported, with Germany and Austria specifically mentioned. Most players stated that demand had been healthy for the last two months and did not yet see any noticeable slackening off as November approached.
In November, a further €20-40/tonne reduction occurred, taking representative values to €1,050-1,080/tonne FD (free delivered). This reflected a small dip in styrene prices and also a continuing ample supply of material available to the market. It was not said to be the result of weak demand.
US market review by George Martin, ICIS pricing
In the period from August to November 2009, North American EPS prices increased until September, but declined sharply in October as producers competed hard to move volumes, while also closing the door for offshore beads from Asia.
Domestic prices reached levels of 74-80 cents/lb in September before lowering to the 69-76 cents/lb range in October. With a few accounts, prices were said to have dropped as low as 66 cents/lb, but most accounts were in the range of 69-74 cents/lb, sources said.
EPS prices went down too far in October, much lower than needed to keep Asian product out of the market, while feedstock benzene prices were headed up.
Prices were steady in November, but at least one producer was seeking a 3 cents/lb increase for December. This measure was not well-supported, considering that the winter months bring lower demand from the construction sector.
North America’s demand remained weak for the construction and packaging sectors as the economy continued to lose jobs. Production was done mostly on demand and transformers kept minimal inventories on hand.
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Polystyrene, expandable
Uses and Outlook
Expandable polystyrene (EPS) is a rigid cellular form of polystyrene with good thermal insulation and shock absorbing properties, high compressive strength, very low weight and resistance to moisture. These properties of EPS bring many benefits, in particular to the construction and packaging industries.
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Polystyrene, expandable
Process Technologies
Expandable polystyrene (EPS) is produced in a suspension process by adding a blowing agent, usually pentane, which causes resin to foam during moulding. The process may be performed as a single step or a two step process.
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