Taiwanese producer raises PS prices to SEA, China

A source from a Taiwanese producer reported that they applied increases on their PS offers to China and Southeast Asian markets given higher styrene and butadiene prices.

Accordingly, the producer’s prices are up by $30-50/ton for GPPS and $10-20/ton for HIPS when compared to last week’s levels. The producer concluded deals from their offer levels at $1380-1400/ton for GPPS injection while deals for HIPS injection were concluded with a $10/ton discount at $1410-1430/ton on a CIF SEA/China, cash basis.

A producer source opined, “Offers for GPPS are mostly firm while HIPS offers are subject to $10/ton discounts. We were not able to raise our HIPS offers much due to weak demand while the ongoing butadiene increases exert cost pressure on us. Demand for GPPS is still better than HIPS. Unlike last year, distributors mostly have some inventories and they focus on clearing their stocks before Chinese New Year.”

Regarding manufacturers, the source also stated, “Manufacturers find current price levels too high to accept. Most of them have inventories that will last until February; therefore, they prefer to stay on the sidelines. In general, demand is only from regular customers purchasing based on their needs.”

Sharing his expectations about the market, the source commented, “We expect to see stable prices in the first quarter on the back of the upcoming styrene plant maintenances. We think prices will start to soften in May or June.”