Asia EPS offers stable-to-lower as demand remains tepid

SINGAPORE (ICIS)–Some suppliers of expandable polystyrene (EPS) in Asia reduced their offers this week, in view of weak demand and recent soft crude futures, market sources said on Wednesday.

Offers were heard at $1,250/tonne CFR (cost and freight) Asia and lower, down by around $10-20/tonne from previous quotations.

Other sellers, however, maintained their offers this week even though buying interest has remained lacklustre.

The slump in crude futures over the weekend has dampened sentiment in the EPS market, with buyers mostly keeping to the sidelines.

“Buyers remained slow to commit and even current offers could not draw [them in],” said a distributor in SE Asia.

EPS resins are made into styro-foam and are used for packaging and insulation panels.

Buying interest for EPS in China remained below expectations, amid the start of the third-quarter manufacturing-for-exports season in China. The exports season typically stretches from July to October each year.

Some suppliers attributed the tepid EPS demand to weak economic expansion in China and across Asia.

“Demand for EPS from the Chinese construction sector was relatively poor this year,” said a producer in China.

The recent slippage in feedstock styrene monomer (SM) prices also prompted EPS buyers to maintain their cautious stance.

“Bids have become limited as buyers expect resin prices to ease further in the near term,” said a producer in Taiwan.

By Clive Ong

Top Image: Polystyrene is used in packaging. (Source: Monkey Business/REX/Shutterstock)