(MRC) -- Following September results, Ukrainian companies reduced the import volumes of expanded polystyrene (EPS) by 25% compared to August, according to MRC DataScope.
EPS shipment to the Ukrainian market in September exceeded 2,000 tonnes that was by 25% less then in the previous month. In August, import made 2,800 tonnes, which was a year's high record. Over the nine months, the Ukrainian companies supplied more than 17,500 tonnes of EPS that was 14% more year on year.
The main reason for the decline in September import of EPS was the high export quotations in July, the period of materials contracting. In July, the Asian producers increased export prices to nearly $1,800/tonne FOB, in the late July, which was by $100/tonne more than in June.
Excess offer from producers resulted in a significant reduction of purchases by the Ukrainian companies. Low EPS market activity in the first half of the year also affected the purchases in July.
Over September, demand for EPS in the Ukrainian market was high. The decline in imports resulted in a shortage of the material in early October. Available EPS volumes covered contract obligations of the trading companies, while the spot market was practically still. Following October results, the price of the Asian material in the domestic market increased by UAH1,000/tonne.