Asian PS producers: Demand concerns may gain prominence
Last week, a Taiwanese producer commented, “Our prices remained unchanged, but our margins shrank significantly. Demand is stable to weak as we can only receive some orders from our regular customers. Buyers continue to source on a needs basis only. Current supply concerns in Asia are the only factor supporting prices.”
This week, the same producer’s stance appears to be faltering as the producer believes that demand concerns might come to the forefront by saying, “Even though we still kept our prices steady, they are subject to negotiation. We might concede to discounts if buyers decide to source in large volumes. Considering the state of demand and players’ preference to position themselves in a wait and see situation and buy only on an as needed basis, we might have to sell at a loss. We expect prices to lose ground on the back of weak demand.”
A producer in Vietnam commented, “We expect prices to go lower in line with the return of plants and slowing demand after Chinese holidays. Market sentiment remains weak and we think that there won’t be any peak season for this year and overall business was weaker compared to last year.”
In feedstock markets, styrene prices fell around $20/ton on the week to be currently reported at around $990/ton on FOB Korea basis while prices for this monomer indicate a drop of $30/ton compared to the beginning of September.
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