Market Players: Local PS Prices In China Would Not Gain Support From SM Price Movements
- Several foreign PS producers are currently focusing on the delivery of order backlogs
- Zhenjiang ChiMei Chemical will conduct maintenance at its 520,000 tons/year PS plant
- China PS market expected to remain soft in the near term
Market participants voiced out to SSESSMENTS.COM that for the time being, local PS prices would not gain support from SM price movements. On the week commencing July 13, despite reductions in SM prices, a local producer decided to increase offers for GPPS Injection and HIPS Injection by CNY200/ton ($29/ton) due to the relatively tight supply for high-end PS materials. In the import market, no fresh import PS offers from Malaysian and South Korean producers as the companies had sold out all August shipment allocation to China market. Likewise, an Indonesian PS producer had sold out more than 1,000 tons of GPPS Injection and HIPS Injection cargoes to China for July shipment with deals concluded at $990/ton and $1,080/ton, respectively on LC at sight, CIF China Main Port basis. While for Taiwanese cargoes, offers for import GPPS Injection and HIPS Injection from a Taiwanese producer moved up between $10-20/ton on a weekly comparison. The producer decided to increase offers since the company almost sold out all allocation for August shipment. Further added, several foreign producers still focus on arranging delivery of order backlogs.
As told to SSESSMENTS.COM, overall buying sentiment remains sluggish over the week amid the uncertain market. However, some players mentioned that finished product demand on big converters’ end remains healthy as they received some orders from the export markets, such as Europe and the US. On the supply side, as of July 16, SM inventory in coastal China recorded at 307,800 tons, decreased by 9,700 tons from last week. While at the traders’ end, the inventory level reduced by 8,700 tons, stood at 205,300 tons. On the production sector, Zhenjiang ChiMei Chemical will conduct maintenance shutdown at the company’s 520,000 tons/year PS plant for a month starting from August 1.
Looking ahead, market players foresee a slim chance for local PS prices to increase as SM prices will be difficult to increase owing to ample supply. While for demand, China PS market expected to remain soft in the near term since the peak season for PS in China is over, sources stated to SSESSMENTS.COM.
