Asian PS cargos dealt with discounts in Turkey
This week, an Indian PS producer lowered its list prices by $75-85/ton for the new month and conceded to further discounts on a few of their done deals. The recent offers stood at $1600/ton for GPPS and $1670/ton for HIPS, CIF Turkey, subject to 6.5% customs duty, cash. A couple of players reported hearing GPPS deals below $1550/ton for this origin. An agent of the Indian source noted, “Our producer cut its prices under the pressure from falling spot styrene costs in Asia and poor buying interest from Turkish buyers. We managed to sell some material following our discounts.”
A South Korean producer also approached to the market with lower PS prices. Accordingly, the producer’s latest prices stood at $1580-1600/ton for GPPS and $1750/ton for HIPS, CIF Turkey, cash. These levels were down by $70-90/ton for GPPS month over month. As for HIPS, a trader reported, “We purchased a moderate amount of material from the source at $1730/ton, a $20/ton discount from their initial level following our negotiations.”
Last week, another Korean source’s prices at $1700$/ton for GPPS and $1750/ton for HIPS, CIF Turkey, cash did not see any buying interest. A trader who received those prices said, “We are mulling over skipping another month in terms of stock replenishment unless our supplier gives a satisfactory discount. We are not confident about demand status in Turkey and the PS market in Asia is not rising any longer, which makes it risky to commit to long-distance cargos.”
Spot styrene prices were down by around $120/ton on a FOB Korea basis throughout February after hitting the highest levels since September, 2014, according to the weekly average data on ChemOrbis Price Wizard. Similarly, spot butadiene costs on a CFR China basis plunged $170/ton over the last month. Nonetheless, expectations for a rebound in upstream costs remain valid given the scheduled turnarounds in several styrene and butadiene units across Asia during the spring season.
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