SINGAPORE (ICIS)--Polystyrene (PS) producers continued to target higher prices this week, while some concede that it was an uphill task as demand remained lacklustre.
Suppliers quoted prices this week at $1,240-1,320/tonne CFR (cost & freight) China, up by some $10-20/tonne than last week’s levels.
With feedstock styrene monomer (SM) prices rebounding from a low hit in mid-May to breach the $1,100/tonne CFR China, PS sellers were keen to lift resin prices to maintain workable margins.
“Demand is slow and there is likely limited improvement in June,” said Taiwan-based producer.
Sellers’ initiative to hike prices were met with resistance among many buyers, which continued to peg bids at much lower levels.
“Some buyers are bidding [at] around $50/tonne lower than the offers,” said a trader in China.
PS resins are used for packaging, toys, utensils, consumer electronics and variety of consumer items.
Some sellers remained cautiously optimistic that demand would resurface in the weeks ahead as the market enters the traditional third-quarter manufacturing-for-exports season in China.
“Demand in China should pick up from July, although there are limited signs of stronger buying momentum currently,” said a southeast Asia-based producer.
Picture: Polystyrene (PS) resins are used for packaging. (Photographer: Hans Lippert/imageBROKER/REX/Shutterstock)