Traders: PS supplies in Turkey may tighten after June
“End business is performing below our seasonal expectations so far. We believe that PS prices still have room to move down considering falling styrene costs,” converters from the insulation and disposables industries commented this week. Spot styrene prices have plunged by around $60/ton on an FOB Korea basis since the start of May, according to data from ChemOrbis Price Wizard.
Traders started to keep their replenishment activities in check considering lingering buying interest and the approaching Ramadan. Some sellers argue this would result in tight supplies this summer as the market may see lower volumes after June although no supply concerns are being voiced nowadays given poor demand.
“We purchased a moderate amount of HIPS from a South Korean producer with discounts for end June delivery since we have no prompt material. We are cautious about our replenishment volumes given bearish market expectations,” said a trader.
A distributor opined that crude oil prices were up while the lack of healthy demand weakened price levels in the PS market. “We believe that supply will most probably tighten in the July-August period as traders have clearly reduced their replenishment amounts in the recent weeks. Players are refraining from engaging in long distance cargos,” he added.
The locally-held GPPS range was reported at $1550-1650/ton while HIPS was at $1640-1690/ton an ex-warehouse/FD Turkey, cash inc VAT. According to ChemOrbis Price Wizard, GPPS prices are down nearly $80/ton since mid-April on a weekly average, while HIPS prices lost $40/ton in the same period.
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