China PS prices have retreated as the hype generated by new safety regulation, “one head, one helmet” cooled down, a Chinese PS producer told SSESSMENTS.COM. As reported, the producer’s local offers for both GPPS Injection and HIPS Injection cargoes were adjusted down by CNY100/ton ($14/ton) from last week’s levels since the frenetic helmet demand has vanished. Upstream, SM prices also dropped between CNY100-150/ton ($14-21/ton) on week-on-week comparison amid high domestic SM inventory despite crude oil prices captured firmer in the past three days. Additionally, the overall demand for PS resins has started to slow down as June-July is low season for PS market in China.
Looking ahead, the producer shared with SSESSMENTS.COM that local PS prices would fluctuate within a limited range of between CNY100-200/ton ($14-28/ton) in the near term citing that supply factor should be able to prop up significant changes in prices. Overall, PS supply in the local market is relatively tight amid maintenance shutdown at several local producers’ plants and most producers have already sold a lot of cargoes in early May.
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