Southeast Asian maker rollover PS offers to Vietnam despite strong SM costs

A Thailand producer has announced fresh weekly PS prices to Vietnam at unchanged levels compared to the last offers at $1310/ton for GPPS and $1370/ton for HIPS, all based on CIF Vietnam, LC AS term. 

Sources attributed the stable price decision to the fact that demand condition remains soft in the country, which undermines the recent rebound in the upstream styrene monomer market. 

Data from CommoPlast suggests a $54/ton hike in the styrene monomer costs compared to last Thursday, to $1012/ton FOB South Korea on 1 April. Thanks to the strong energy complex and falling inventories in China market, styrene monomer gains the support to end the seven consecutive days of falling. However, the sustainability of the upswing remains questionable, sources said.

Players are suggesting that the market might need more support to sustain the current firming trend. “Manufacturing activities in China perked up in March, but the on-going safety inspection might force plants to lower operation rate or shutdown, which could bite into demand. We have to monitor further,” a Chinese trader added.