WeeklySSESSMENTS: China PS Prices Week Starting June 15

Author: SSESSMENTS

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Chinese Market Players: Demand For PS End-Products Expected To Decline After Online Shopping Festival Ended

Local and import PS offers in the China market moved in tandem
Although some buyers procure materials on a hand-to-mouth basis, demand condition remains healthy
BASF-YPC Company Limited finished maintenance earlier than scheduled

Chinese market players opined to SSESSMENTS.COM that demand for PS end-products is expected to decline after the online shopping festival ended on June 18. As for PS offers this week, the players informed that local offers in the China market were relatively stable to a slight decrease of CNY50/ton ($7/ton) compared to a week ago. The stable offers were supported by limited supply and stable SM prices. Similarly, import HIPS Injection offers for July shipment from South Korea were also unchanged compared to the same period. The offers stood at $1,020/ton on LC at sight, CIF China main port basis. A Vietnamese PS producer did not have any offers for GPPS Injection to China this week as the producer had sold out July shipment allocation to China, around 2,000 tons.

Compared to last week, the current demand for PS in China has declined slightly. Some buyers have been back to a hand-to-mouth procurement pattern. However, a local producer considers that the demand for PS remains healthy as the producer managed to conclude deals every day this week although the volume is not big. On the supply side, tightness in PS supply is still reported to SSESSMENTS.COM. Upstream, there were increases on SM inventory level. The total inventory level of SM at China ports was 319,500 tons as of June 18, an increase of 16,200 tons from last week. Meanwhile, SM inventory on traders’ hands went up by 17,700 tons compared to the same period to 219,500 tons. In the production sector, BASF-YPC Company Limited finished maintenance at the company’s 200,000 tons/year PS plant four days earlier than scheduled. The producer restarted PS unit on June 16 and informed that the plant is running normally.

In the near term, some market players expect PS prices to remain firm following crude oil and SM prices. Some others predict that PS prices might increase due to tight supply. Regarding demand, market players told SSESSMENTS.COM that demand for PS end-products would decline after the online shopping festival ended on June 18.

Local PS offers on cash, EXW China basis (including 13% VAT in CNY term, excluding VAT in USD term)