Low buying interest, costs push Asian PS offers down in Turkey
Retreating prices came in tandem with price reductions seen in China’s import PS market under the pressure of weak production costs although crude oil and styrene prices showed a little rebound at the end of this week.
Indian PS prices were down by $70-80/ton to $1150-1180/ton for GPPS, while HIPS plunged $70-100/ton to $1200-1230/ton, CIF Turkey, subject to 3% customs duty, cash. An agent of an Indian source commented, “We are not so optimistic regarding the near term outlook since demand remains discouraging and competitively-priced Iranian materials weigh down on the market.”
Duty-free South Korean origins recorded discounts of $10-20/ton for GPPS and $20-50/ton for HIPS week over week. Currently, offers stand at $1220/ton for GPPS and $1220-1270/ton for HIPS, CIF, cash. "We obtained $20/ton discounts from our supplier and replaced some limited amount. We don’t expect to see steep price cuts but financial issues at companies may become more visible by year end and we are concerned,” a trader reported.
A different South Korean producer withdrew its $30/ton hike requests for the month and conceded to rollovers for HIPS, according to a second trader. “We committed to a limited amount considering generally mediocre demand inside Turkey,” the trader noted.
Source: ChemOrbis Price Index
PS manufacturers are mostly taking a “wait-see” stance these days with some of them blaming their hindered export business following a military coup attempt in mid-July in Turkey. Collection issues and cash constraints continue to dampen overall activity, while some sellers hope to see improved demand following the Eid Holiday in September.
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