Bearish mood lingers over Asian PS markets amid tepid buying

PS markets across Asia showed little sign of revival in the week ending August 15, with both domestic and import prices remaining broadly stable or slightly softer. Despite a modest uptick in Brent crude and styrene monomer prices, these changes were too marginal to stir market sentiment or shift trading activity. Demand remained underwhelming across major markets like China and Southeast Asia, where oversupply continued to weigh on outlooks. Players cited sluggish downstream demand, weak seasonal buying, and trade headwinds, particularly for export-driven businesses, as key pressure points.

Upstream costs provided limited support. Brent crude futures edged up by nearly 1% to $66.84/bbl as of Thursday, August 14, while spot styrene prices rose just $5/ton to $900/ton CFR China and $890/ton FOB Korea. These muted increases failed to provide direction, leaving downstream players cautious and hesitant to build inventory.

China’s domestic market flatlines amid quiet demand

China’s local PS market saw minimal movement, with domestic GPPS and HIPS injection prices holding flat compared to the previous week. According to ChemOrbis data, HIPS prices remained stuck at over two-year lows, while GPPS hovered around two-month lows, reflecting ongoing demand weakness and oversupply.

A source from a local producer noted, "The market is still quiet and demand is as weak as in previous periods. There are no improvements yet, and it’s difficult for prices to rise or fall in the near term." Another local player echoed similar sentiment, citing long supply and restrained buying: "Buyers are still cautious and purchase only for basic needs. We expect the market to fluctuate at low levels for the time being." A trader added, "Overall demand remains weak, and there’s little chance of prices moving sharply in either direction soon."

Buyers eye further price reductions as import markets soften

Import markets in China and Southeast Asia were stable to slightly softer over the week, nearing two-month lows. GPPS and HIPS injection grades in China fell by up to $20/ton, while Southeast Asian markets saw similar declines, particularly for ASEAN-origin cargoes. NEA-origin GPPS held relatively steady, while HIPS edged $10/ton lower.

A source from a Taiwanese producer exporting to China said, "We’re still operating at a loss, so it’s hard to lower prices further. Demand is weak, especially with fewer US and Christmas-related orders due to tariff issues." The source added that while US-bound exports were declining, "China’s total exports increased slightly, with more shipments going to North Africa and Southeast Asia."

In Southeast Asia, pressure on prices was more apparent. A Vietnamese producer’s source noted, "It’s hard to offer above $1100/ton when there are deals below that level in the market. End-product demand just isn’t there." A converter in Vietnam commented, "I’m not buying now. Prices keep falling, and I’ll wait until PS nears $1000/ton before considering year-end needs." Meanwhile, a Malaysian trader said buyers remain hesitant: "Demand isn’t very strong, and many expect further softening. No one wants to replenish aggressively right now."