Iranian PS source steps back from steep increases in Turkey
“Our Iranian PS producer adjusted its prices down given the stiff resistance from Turkish buyers following $150/ton hikes issued last week. However, we are not sure whether the supplier would give more ground next week since freight rates from Iran were up due to the approaching Newroz Holiday in Iran,” reported a manufacturer. Accordingly, the most recent prices stood at $1440/ton for GPPS and $1480/ton for HIPS, CPT Turkey, subject to 6.5% customs duty, cash.
Another player commented, “We have been skipping our purchases from the Iranian source for the last two weeks since we found the recent hikes a bit artificial. Now that spot styrene costs in Asia saw some downwards correction following massive increases, we will try to obtain more discounts from our source, who stepped back by $40/ton this week.”
Spot styrene prices in Asia fell around $140/ton on FOB Korea basis over this week although they remained above a month ago. Yet, the scheduled turnarounds in several styrene units located in Asia may help costs to rebound again for the feedstock, some players remind.
As for expectations, some players believe that Iranian PS prices may not move back further since material flow from the country to Turkey will be halted during Newroz Holiday. However, other players remind that the nearing year-end in Iran usually causes sellers to destock which could bring further discounts from PS producers particularly if demand in Turkey remains mediocre despite the nearing high season.
Meanwhile, overall, prompt Iranian GPPS and HIPS materials were reported at $1500-1550/ton and $1550-1570/ton, respectively, FCA Turkey, subject to 6.5% customs duty, cash so far this week.
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