Market and product

Polystyrene (PS) suppliers in Asia lifted their offers for the resins again, following the uptrend in feedstock styrene monomer (SM) numbers last week, said traders and producers on Tuesday.

Offers for PS were raised by some $30/tonne to around $1,250-1,260/tonne CFR (cost and freight), they said.

“SM prices remained firm and hence, we need higher prices to maintain a workable margin,” said a southeast Asia-based PS producer.

For the week ended 4 November, spot SM prices punched through the $1,100/tonne CFR (cost & freight) China threshold, a level not seen since the middle of April this year, ICIS data showed.

PS resins are used for packaging, utensils, toys, consumer electronics and a variety of consumer items.

Buyers of PS were reluctant to procure cargoes on concerns that the sharp price uptrend could suddenly fizzle out.

“There is uncertainty among buyers and many [are] not keen to purchase more,” said a resins trader in Singapore.

Some bids from end-users this week were heard in the low-$1,200/tonne CFR Asia levels, which most sellers deemed too low.

“Bids received are too low since SM prices are already above $1,100/tonne CFR China,” said a PS producer in Taiwan.

China’s exports sector is entering the year-end lull with demand for resins from this segment expected stay soft into the first quarter of next year.

The country is the world’s second biggest economy and a major importer of petrochemicals in Asia.

Meanwhile, manufacturing of finished goods for the Chinese local market has kicked off in November and could sustain demand for PS in the near term, market sources said.

“Further prices upswing in PS will depend on SM performance and local demand in China”, said a trader in China. - ICIS