[24/7] EPS prices continue to hit records in Asia The demand for expandable polystyrene (EPS) has weakened significantly on the back of an unprecedented rise in price of styrene monomer in Asia, which made Chinese producers to increase EPS prices. July and August are traditionally the peak in the consumption of EPS in China, with exports booming and improvement in construction sector, where thermal insulation materials made of EPS are widely used. In early July, on expectations of growth in demand for polystyrene, prices of styrene monomer (SM) also began to rise in Asia. The situation was aggravated by the tight supply of SM in the region. As a result, SM price has reached USD1,800/tonne, which forced producers of EPS to increase the prices similarly. Thus, in the beginning of the month the price of Chinese EPS was settled at USD1,950/tonne FOB China. Producers of EPS traditionally try to maintain the minimum margin of profit around USD150/tonne in relation to styrene monomer. Therefore, when SM prices rose to a high of USD1,830-1,850/tonne, Chinese producers have responded with increasing price of EPS to USD2,010/tonne FOB China, which is an absolute record. Buyers of Chinese EPS from the CIS countries have suspended the purchases of material, the price of which, they believe, is too high. Russian traders who supply the material through the ports of St Petersburg and Novorossiysk, reduced or stopped buying Chinese EPS in the beginning of the month. Another price increase made the traders who supply through Vostochniy port also reduce their purchases. Ukrainian market of EPS is going through a difficult time in 2013, accompanied by a decrease in consumption of material. A series of price rises from Chinese producers have resulted in the complete cease of purchases of Asian material. Belarusian buyers of EPS have switched to European material, with lower logistics costs, as well as the relative stability of prices this year. Source:MRC
Posted on: Wed, 24 Jul 2013 05:20:28 +0000
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