Market Players In China Reported Feeble PS Demand From Downstream Market
- Local and import PS offers move in tandem
- No improvement recorded in terms of demand
- Local PS offers expected to remain stable
Market players in China reported to SSESSMENTS.COM the feeble PS demand from the downstream market for the week commencing July 27. From two local producers, offers for GPPS Injection recorded stable to slightly firmer by CNY50/ton ($7/ton) while local offers HIPS Injection were higher between CNY50-100/ton ($7-14/ton). From the import market, August shipment offers from an Indonesian PS producer increased by $50/ton compared to July shipment offers. Despite the adjustment, sources stated that around 2,000 tons were sold to the China market with deals for both GPPS Injection and HIPS Injection concluded at the initial offer level. Meanwhile, a South Korean producer adjusted import HIPS Injection offers to China by $10/ton higher. All price changes on week-on-week comparison, unless stated otherwise.
According to market sources reported to SSESSMENTS.COM, there is no significant improvement observed for PS demand in China this week. However, sources claimed that the relatively tight supply in the market has provided a cushion for PS prices. From the downstream market, market sources highlighted that demand for finished products is moving into different directions. For refrigerators and optical materials, the demand is robust. Meanwhile, other sources reported tepid demand for finished products, such as from the building insulation sector. On the supply side, SM inventory level in coastal China recorded at 303,000 tons as of July 30, increased by 2,000 tons from last week. While from the traders’ side, the inventory also increased by 3,500 tons, recorded at 201,500 tons.
Looking ahead, market sources opined to SSESSMENTS.COM that it is unlikely to see notable improvements in PS demand in the near term as there is no positive news to stimulate buying sentiment. As such, local PS prices are expected to remain stable at the current levels.
