Costs climb, sentiment shifts: Asia’s PS markets test a cautious uptrend

PS markets across Asia appear to be turning a corner, with upstream cost pressures mounting and global energy prices rebounding sharply. In the week ending on June 20, import markets have started to reflect a firmer tone, while Chinese local markets maintained the uptrend. However, demand remains patchy, with many buyers cautious amid macroeconomic and geopolitical uncertainties. This week’s movements signal a shift in sentiment, albeit a tentative one, as producers attempt to push through higher offers while buyers tread carefully.

Price push meets a wall of weak demand in China’s domestic markets

Domestic PS prices in China rose for a second consecutive week, buoyed by the sharp climb in crude oil and styrene costs. GPPS injection prices climbed CNY200/ton while HIPS injection gained around CNY150-200/ton in the week ending on June 20.

A domestic producer’s source said, “Prices rose sharply due to stronger crude oil and styrene monomer markets. But demand is still weak, and buyers remain cautious.” A source from another local producer added, “It is expected the market will rise slightly due to firmer costs,” but he acknowledged no major shifts in supply-demand dynamics. Despite the upward push, market players noted that deals remained average, as downstream buying interest failed to match the cost-driven momentum.

Import prices reverse course after 4-week downtrend in China

Import prices into China also shifted higher after a month-long downtrend, with GPPS and HIPS injection offers rising by up to $20/ton. A Taiwanese producer’s source said, “We want to raise prices due to crude oil’s sharp rebound, but it’s still difficult to convince buyers.”

Buyers are still grappling with weak end-user demand and are largely staying on the sidelines. A Chinese converter commented, “Buyers are purchasing only for basic needs... and many remain cautious due to market uncertainty.”

While some sellers expressed hope for further upside if geopolitical tensions escalate, others are wary of the long supply and soft demand that continue to weigh on sentiment.

Import prices climb as sentiment turns in SE Asia

Import prices in Southeast Asia moved higher, with GPPS injection offers from Northeast Asia rising $10-40/ton, while HIPS offers climbed $20-40/ton. A Taiwanese supplier commented, “Supported by the rebound in both the upstream energy market and styrene prices, spot offers increased. But downstream factories remain cautious, resulting in limited replenishment activity.” Meanwhile, a Vietnamese trader noted that South Korean and Chinese offers increased around $20-50/ton, though he personally had no need to restock. The price movement marks a clear shift from the previous two weeks of stability, but the enthusiasm remains tempered by lukewarm demand and high existing inventories.

While Northeast Asian offers showed strength, ASEAN-origin prices remained mostly steady, particularly at the high end of the overall price ranges. A Malaysian trader shared that offers were stable, but “he heard sellers may increase prices next week.” Weak business conditions have kept some suppliers from pulling the trigger just yet.

On the buying side, a Vietnamese converter remarked, “Prices are higher than last week around $30/ton, but we have enough stock till the end of July.” Some buyers are betting on arbitrage opportunities or replenishing selectively, but not driven by real consumption. The tone is cautiously firmer, with cost pressures offering the only clear bullish signal.