Falling upstream costs pulling PS prices lower in Vietnam

After an extended period of following the firming trend, styrene monomers costs based on FOB Korea term started falling late last week as suppliers attempted to deplete inventories ahead of the long National Day holiday in China. Price plunged $75/ton on 29 September compared to earlier of the week, casting tremendous pressure on the downstream PS market.

Several producers started cutting GPPS offers to Vietnam by $30-40/ton this week, following the downtrend in styrene market. However, buyers remain cautious about making replenishment, claiming that current prices are still way above acceptance levels.

A trader received Singaporean GPPS at $1490/ton CIF Vietnam, LC AS term, a $40/ton drop from last week said, “We are very concern about the near term outlook and therefore we prefer to wait a little longer before making replenishment. Local producers are selling at very competitive levels, making it difficult for imported materials to compete.”

Another buyer reported a $35/ton reduction on Taiwanese GPPS added, “Market trend might be clearer after Chinese players return from the holiday. It is the traditional high demand season and styrene is still at multi months high despite the recent drop. Post holiday demand in China is the key factor determining the next trend, hence we prefer to be conservative.”