Falling polystyrene prices in Asia correspond with input SM values

Styrene Monomer prices are deteriorating further in line with falling input costs as well as weak demand from Chinese buyers due to production cuts during the on going Olympic Games. FOB South Korea prices, heard at US$1460/Mt and CFR China prices about twenty dollars more, have failed to revive buying interest in the region. Buyers are targeting CFR price ranging around US$1450. This price may not be very unattainable as more material is to unleashed into the markets as Jubail Chevron Phillips launched into the market by end of September. Downstream Polystyrene market continues to have gloomy outlook as demand from end users becomes lackluster as they prefer to be in the sidelines in anticipation of a further price correction in line with falling input costs. Despite a thirty dollar drop in GPPS prices, buying intention is being heard another 30-40 dollar lower at less than US$1650/MT CFR China, while HIPS markets are being gauged below the 1800 mark.