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Delta between GPPS and HIPS hits a multi-year high in SEA

by ChemOrbis Editorial Team -
  • 10/02/2017 (16:37)
According to data obtained from ChemOrbis Price Index, the gap between import GPPS and HIPS in Southeast Asia started to widen significantly since mid-January while the PS market has been on an uptrend since October 2016.

Southeast Asian PS players attribute comparatively higher HIPS prices to the strong upstream market, especially butadiene prices on a CFR China basis which are standing above the $3000/ton threshold since the end of December. Plus, spot styrene prices on an FOB South Korea basis are around $230/ton higher when compared to January levels despite recent fluctuations seen this week and they are currently quoted at $1485/ton.

ChemOrbis Price Index Data shows that the delta between import GPPS and HIPS prices is currently around $118/ton. As can be seen in the below graph, the price gap between the two products has reached the highest level recorded since November 2012.

Source: ChemOrbis Price Wizard

Asian producers approached the market with considerable hikes on their PS prices, with relatively higher amounts for HIPS in the week after the holidays as they follow up high butadiene prices.

A Taiwanese producer reported that they implemented a bigger hike of $200/ton on their HIPS injection offers while raising their GPPS injection prices by $190/ton to Southeast Asian markets. The producer’s new prices are currently standing at $1670/ton for HIPS injection and $1600/ton for GPPS injection, all on a CIF SEA, cash basis. Meanwhile, done deal levels are $20/ton lower for both products.

A Southeast Asian producer offering only HIPS to the region reported that their done deal levels rose visibly by $150/ton from pre-holiday levels to be reported at $1800/ton on a CIF SEA, cash basis.

A source from the producer said, “We already sold out our February quota. However, the number of done deals is limited this week as buyers find current prices too high to accept. Still, we think HIPS prices will continue to firm up with the upcoming shutdowns at several styrene plants in the region.”

Meanwhile, another Southeast Asian producer lifted its HIPS and GPPS prices by $260/ton and brought their new offer levels to $1820-1830/ton for HIPS and to $1720/ton for GPPS and, both on a CIF SEA, cash basis.
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