- Domestic GPPS and HIPS offers fluctuate in China market during June
- A slight improvement in buying sentiment due to rekindled US-China trade negotiation
- A slim chance for improved demand and lower prices for PS in the near term
Market sources contacted by SSESSMENTS’ team shared information regarding PS market in China during June. In the week commencing June 10, SM price recorded up by CNY400/ton ($58.2/ton), but domestic GPPS Injection and HIPS Injection offers were adjusted down between CNY50-150/ton ($7.3-21.8/ton) due to the weak demand. Similarly, offers for import GPPS and HIPS from a Taiwanese producer to China were down by $20/ton. All prices compared to the week commencing June 3.
On Tuesday, June 18, market sources informed SSESSMENTS that the local GPPS and HIPS offers reported up between CNY100-200/ton ($14.6-29.1/ton) compared to a week earlier as supported by the hikes in SM prices which hit its highest level in 2019 at CNY9,000/ton ($1,310/ton) on cash, EXW China basis and including 13% VAT, following the rekindled US-China trade negotiation. However, SM prices declined again by around CNY150/ton ($21.8/ton) on Wednesday, June 19 as market players believe that prices may not be sustainable at such a level in the face of low season for PS applications. During this third week, import GPPS and HIPS offers from a Taiwanese producer remained stable as compared to a week earlier.
In the week commencing June 24, the domestic GPPS Injection offers were down between CNY200-300/ton ($29.1-43.7/ton), in line with decreases in SM price by CNY200/ton ($29.1/ton) as compared to a week earlier. Similar to the third week, market sources told SSESSMENTS that offers for import GPPS and HIPS from a Taiwanese producer to China recorded stable over the week.
Overall demand during the month considered as sluggish. Some sellers informed SSESSMENTS that there were done deals for Taiwanese cargoes as buying sentiment improved following the positive signals on the US-China trade negotiations. However, the improvement was insignificant since it is the traditional low season for home appliances in China. On the production sector, several PS producers in Taiwan and South Korea reported operating at reduced rates since early of June in anticipation of lower SM price following Hanwha Total Petrochemical plans to restart its 1.05 million tons/year SM unit in July 2019.
In terms of outlook, market players shared opinion to SSESSMENTS that there is only a slim chance for improved demand despite the positive results of the US-China trade talks as June until August is a traditional lean season for PS in China. Meanwhile, the possibility to see lower PS offers is also thin considering the relatively firm SM prices.
Tags: Asia Pacific,China,English,EN STYRENICS CHINA MSS,MonthlySSESSMENTS,Northeast Asia,Styrenics China PS Prices,PS PricesJuly 1, 2019 6:35 PM