Market sources informed SSESSMENTS.COM that China’s PS prices have surpassed a new threshold after significantly adjusted downward following softer monomer prices. This week, local offers for GPPS and HIPS Injection from Chinese producers and traders plunged between CNY200-800/ton ($28-112/ton) on a weekly comparison. At the moment, local prices for both PS grades have broken below a new threshold of CNY7,000/ton-level for GPPS Injection and CNY8,000/ton-level for HIPS Injection. The sources notified that price reductions were made following the softer SM prices by CNY400/ton ($56/ton) from last week’s level. Besides that, the accumulation of inventory also depress the prices; hence, the decrement in PS prices are bigger than monomer. For deals, some producers managed to sell a small volume in the local market, yet the exact price level could not be disclosed.
As the monomer prices were on a downtrend, buying sentiment in China this week is also weakening. Currently, the market condition in both upstream and downstream is not good. Citing that old orders could not be delivered, new orders could not be received, while some even cancelled due to force majeure amid intensified Coronavirus spreads, particularly from converters who are aiming export markets. In the days to come, market sources are doubting that the rebound in crude oil prices could sustain. Additionally, there is no sign that the Coronavirus outbreak in other countries can be controlled in the near future. As such, sources opined to SSESSMENTS.COM that PS prices will remain on the downtrend.
