Spot styrene prices hit year-low levels in Asia

06-May-14

In Asia, spot styrene prices hit their lowest levels reported within a year’s time, as per ChemOrbis. Weak buying interest and relatively high stock levels in China were said to be the main reasons behind this drop. Looking at spot markets, styrene prices were around US$60/ton lower when compared to early April while benzene prices were down by US$10/ton on a month over month basis. In April, benzene contracts also settled with US$25/ton decreases from March although higher prices are voiced for May contract nominations in the region. Spot styrene prices are around US$70/ton below the levels reported a year ago while the offer levels represent a significant drop of US$235/ton when compared with the peak levels they reached around early August 2013. Meanwhile, the PS market saw rather stable offer levels in China during this past week given the limited trading activity due to the Labor Day holiday. However, PS market levels, like styrene, also hit year-low levels. The most recent GPPS prices were around US$20/ton lower when compared to one year ago while HIPS prices indicate around US$70/ton drops for the same time period. However, when comparing the most recent PS prices with their peak levels at the end of September 2013, GPPS prices indicate a large drop of US$135/ton while HIPS prices recorded significant decreases of US$150/ton. According to ChemOrbis, a Chinese producer reported, “We kept our prices stable this past week while overall demand is not encouraging at all. Buying interest was better during March and early April but it has recently slowed down.” Another producer commented, “General market sentiment is weak and we are not hopeful about the upcoming period. Demand is not giving any signs of picking up. Meanwhile, with the depreciating CNY against US dollar, buyers are becoming more cautious on their import purchases. We mostly expect a more or less steady trend over the near term.” Most buyers comment that they are not in a rush to make fresh purchases over the near term which may cause prices to follow a stable to slightly softer trend over the near term.