GPPS price in South East Asia plunge to 24 month low

20-Oct-14

Import GPPS prices in South East Asia plunged to their lowest levels since end September 2012, amid falling upstream costs and generally poor buying interest, as per ChemOrbis. Since early October, styrene costs are US$60/ton lower and benzene is US$80/ton lower. The situation was compounded by falling oil prices, which dipped below the US$80/bbl threshold on last Thursday. Naphtha in Asia lost around US$85/ton on CFR Japan basis, plummeting to their lowest levels seen since 2012. According ChemOrbis Price Index, import GPPS prices to Southeast Asia are also at their lowest levels seen since September 2012. A trader offering SE Asian markets on behalf of a Taiwanese producer commented, “The Taiwanese producer lowered PS prices by about US$50/ton on a week over week basis. However, decreases failed to generate buying interest since buyers continue to meet their urgent needs with the anticipation of further decreases in the days ahead.” According to the source, declining upstream costs reinforce buyers’ decrease expectations and their cautious stance towards fresh purchases. A Thai producer offering to Singapore, Philippines, Indonesia and Vietnam continues to run plant at full rates and therefore aims to remain competitive in the market, like other producers. “So far, not many deals were concluded in the Southeast Asian markets. Most buyers are currently adopting a wait and see stance and they carefully observe the upstream markets,” he further added. According to ChemOrbis, in Vietnam, a packaging converter reported placing a US$30/ton lower counter bid for Taiwanese GPPS when compared to the actual offer level he was given. The buyer, who was waiting for the producer’s response to their bid, noted, “We are willing to purchase four containers if our bid sees acceptance. We see good end product demand but we are still in no rush to replenish our stocks as we already have some sitting at our warehouse.”