Gap between GPPS and HIPS prices shrinks in China
Import GPPS prices were stable to slightly softer week over week to be currently standing at their lowest levels recorded since early June 2009. HIPS prices, on the other hand, posted sharp weekly drops of up to $90/ton, reaching their lowest levels since late April 2009.
A local producer confirmed the narrower gap between GPPS and HIPS prices. A producer source commented, “Demand is weak and it’s even worse for HIPS. Buyers are purchasing on a hand to mouth basis. The smaller gap between GPPS and HIPS has squeezed margins of sellers offering HIPS. As a result, not many HIPS offers are available in the market for now and we also prefer to offer GPPS. We are not optimistic about the outlook. Our current operating rate is 50% and many other major producers in China are also running their plants at this rate.”
A source from a South Korean producer also reported that demand is weak for both PS and ABS as buyers are limiting their purchases to a needs only basis.
The gap between ABS and HIPS prices also shrank from $90/ton in late October to $35/ton this week, with ABS prices standing at their lowest levels since early 2012 when ChemOrbis began keeping records for this product. Lower ABS prices were attributed to weaker spot styrene prices as well as stagnant demand for ABS as the uncertain outlook stemming from volatile crude is pushing both sellers and buyers out of the market.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Asian PVC sees V-shaped recovery in Q2, what will Q3 bring?
- Will capacity additions cast cloud on ethylene upsurge in Asia?
- US PVC offers in Egypt rise steadily but resistance grows in tandem
- PE buyers’ resistance grows in SEA; duty-free origins more competitive than Mid-East
- Polymer demand cools in Turkey: Is price correction ahead for PP, PE and PVC?
- Local PP, PE markets in Indonesia, Thailand, and Philippines follow imports higher
- Taiwanese major’s July PVC pricing exceeds initial expectations
- China’s rising PET trend takes a pause, but longer-term outlook remains firm
- Dalian Futures Market: PP, LLDPE, PVC, MEG
- Vietnam’s homo-PP market plunges to lowest since 2009