MOSCOW (MRC) -- Export prices of Chinese expandable polystyrene (EPS) suppliers have fallen to their lowest level since the beginning of 2015 and were at USD1,110-1,120/tonne FOB China, according to ICIS-MRC Price report.
The price cuts were caused by the general weaker demand in the market in November and lower spot styrene monomer (SM) prices.
The reduction in EPS prices is a positive factor for importers of material to the CIS markets. On Monday, EPS prices, including delivery to the port, were at USD1,170-1,200/tonne CIF Odessa, excluding VAT. Prices in the port of St Petersburg were at USD1,210-1,240/tonne CIF, excluding VAT, and USD1,170-1,200/tonne CIF, excluding VAT.
At the same time, low prices in Asia put pressure on prices of Russian suppliers. New quantities of PS from China, which will arrive in the market in late December, will affect spot prices in the Russian domestic market. Given the current EPS prices in China and delivery costs to Russia (with the dollar exchange rate of Rb68 per USD1), the cost of procurement for the direct buyers will be at Rb96,000-102,000/tonne CPT Moscow, including VAT.
MRC