A Chinese PS producer adjusted up local offers in contrast with SM price movement. SSESSMENTS.COM was informed that as the operating rate at SM factories is high, coupled with ample supply for imported SM cargoes in China, SM prices dropped by CNY100-200/ton ($14-28/ton) compared to last week. Due to this, currently, PS prices in the domestic market are on a downward trajectory. Moreover, PS demand is slow as the small-scale home appliances converters, as well as extruded polystyrene (XPS) converters, prefer to halt procurement activities.
In contrast, from the producer’s end, the company increased local GPPS Injection and HIPS Injection offers by CNY100-200/ton ($14-28/ton) compared to last week on the back of relatively tight supply. More added, the operating rate at the company’s end is around 75-80% from normal production capacity. On the supply side, as of Thursday morning, July 2, SM inventory in coastal China recorded at 321,400 tons, decreased by 700 tons. While on the traders’ hand, the inventory reduced by 1,200 tons, stood at 219,900 tons. All compared to last week’s levels. In contrast with the majority of Chinese market players, the producer opined to SSESSMENTS.COM that outlook for PS market in China is not that gloomy as the supply for the high-end materials will be tight in the near term, and the operating rate at big-scale converters is high.
