Resumed Production At Home Appliances Factories And Automakers Provide Support On China’s PS Market
- Local PS prices moving in line with crude oil and SM prices
- Despite positive market tone, buyers kept procurement at minimal level
- PS demand in China expected to remain healthy in the near term
As informed to SSESSMENTS.COM, the resumed production at home appliances factories and automakers support China’s PS prices. On the week commencing June 1, local PS offers in the China market captured on upward momentum. On a weekly comparison, a local PS producer increased GPPS Injection and HIPS Injection offers by CNY100/ton ($14/ton) and CNY150/ton ($21/ton) respectively following the upward trend in crude oil and SM prices. This week, SM prices increased by CNY100-150/ton ($14-21/ton) from last week. In the previous week, SM prices in China almost reached CNY7,000/ton ($983/ton)-level, the highest level in the past few months. Likewise, another producer decided to adjust up local GPPS Injection and HIPS Injection by CNY200/ton ($28/ton) compared to the same period on the back of limited supply due to the maintenance shutdown at the producer’s end. While from the trader's end, offers for local PS offers moved up by CNY100/ton ($14/ton) from last week’s level. In the import market, deals for Malaysian HIPS Injection cargoes achieved at the same level to the initial offers between $970-1,000/ton on LC at sight, CIF China Main Port basis.
The overall PS demand in China is healthy, in line with the improvement of the finished product demand. Market sources revealed to SSESSMENTS.COM that demand for finished products from the domestic and export market has gradually improved week by week, especially home appliances and automobiles sectors are returning to production levels from before the Coronavirus outbreak. However, purchase volume for PS remains limited as converters only purchased on a hand-to-mouth basis or still have a sufficient inventory on hand. On the supply front, as of June 4, SM inventory in coastal China increased by 26,600 tons compared to last week, recorded at 314,700 tons. While from the traders’ end, the inventory stood at 212,700 tons, increased by 23,600 tons from a week earlier.
Looking ahead, traditionally, June will be a low season for PS, however, as businesses have gradually recovered and become more active, PS demand in China is expected to remain healthy in the near term. As such, market players opined that PS prices will be stable onward, as stated to SSESSMENTS.COM.
