European PS prices face lack of interest in Turkey
Initial April prices for European PS had emerged with hefty hikes of €300-330/ton after styrene contracts settled €300/ton higher. Last week, offers for European PS were reported around €15-20/ton lower on the week at €1550-1560/ton ($1643-1654/ton) for GPPS and €1620/ton ($1717/ton) for HIPS, CIF, cash. Although, those offers saw some correction from a week earlier, buyers are still showing resistance, claiming that these offers are unworkable.
“European PS prices are too high to accept and we do not want to replenish our stocks at these levels,” said a trader. Another trader also commented that demand for his European offers is thin as buyers found them expensive.
Meanwhile, the localization costs of European PS come to around $1965-1975/ton for GPPS and $2050/ton for HIPS after adding a clearance cost of $30/ton and VAT without considering distributors’ margins. However, the localization costs of Asian PS offers stand at least $225-250/ton below the landed costs of European origins.
The landed cost of PS offers for Indian and Pakistani origins, which were reported at $1400-1475/ton for GPPS and $1450- 1550/ton for HIPS CIF, subject to 3% customs duty last week, roughly come to $1735-1825/ton for GPPS and $1795-1820/ton for HIPS. This also shows why European offers have failed to compete this month in Turkey.
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