Pessimistic outlook prevails for PVC, PP and PS in Asia as demand wanes

11-Sep-08

Pessimistic outlook and bearish sentiments that are suppressing demand continue to keep PVC, PS and PP prices down in Asia. Despite conclusion of PVC deals for September shipment at lows of US$1100/MT CFR China, prices have not stabilized this week. The market expects to see a further fall in PVC prices as buyers have expressed intent to buy about fifty dollars lower. As oil and feedstock prices weaken buyers prefer to wait and watch in anticipation of a further price reduction next week. Unenthusiastic demand from China continues to keep polypropylene markets of Asia depressed. PP prices continue falling, as saddled with high stock piles, end users seem uninterested in buying. Most offers have dropped by twenty dollars as producers from South Korea and Singapore down revise CFR China offers to hover around US$1570/MT. Another price dip may be on the cards as CFR China offers from the Middle East have been heard around US$1550. Persistently falling oil and styrene monomer prices continue to exert pressures on price of polystyrene. An additional price dip has pegged GPPS offers down by 20 dollars to the 1600 mark. Triggered by inadequate demand from China, market sentiments continue to be bearish, and buying interest is pegged a further twenty dollars lower. Few deals have been concluded as both buyers and sellers prefer to wait and watch.