Turkey’s PS market hits lowest levels in two and a half years
Import GPPS and HIPS markets retreated to the lowest levels seen since June and July of 2012 following the most recent price drops from Asia this week. Indian prices declined $90/ton for GPPS and $70/ton for HIPS. “We reduced our prices due to lower crude oil costs and thin demand from buyers. Many converters are sidelined to track the upstream chain nowadays. Following the recent drops in PS prices, the gap between imports and locally held offers has widened,” a trader stated.
Pakistani GPPS and HIPS offers were respectively down by $75/ton and $50/ton as well. “These prices seem competitive. We may negotiate a bit more with our supplier before we decide to purchase. Overall, the PS outlook is not encouraging," a trader commented. Another trader said that they plan to wait before buying until prices see the bottom.
Source: ChemOrbis Price Wizard
Similarly, the locally-held PS market touched the lowest levels seen since summer of 2012. The GPPS market has plunged roughly $120/ton on average since the end of the Ramadan Holiday, according to ChemOrbis Price Index. HIPS also declined almost $100/ton in the same period. GPPS was under extra pressure from ample stocks of duty free Egyptian materials that entered Turkey at quite competitive levels in the previous months. Recently, the local GPPS market touched the $2000/ton threshold on the low end, while HIPS hit $2200/ton with prices even below those levels being confirmed in the market for some origins.
Spot styrene costs fell below the $1200/ton threshold by the middle of this week on an FOB South Korea basis. They indicated a $60/ton fall week over week while the cumulative drop amount reached $185/ton since early November. The latest figures were the lowest levels on average since June 2012, according to ChemOrbis Price Wizard.
Market players are not confident about the market outlook, citing persisting pressure from cost side. Even before OPEC members decided to keep their production level unchanged at 30 million barrels/day in the latest meeting that took place in Vienna on November 27, crude oil prices on the NYMEX retreated to $71/barrel while Brent oil prices touched the $75/barrel for the first time since September 2010 during intra-day trading.
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