Market Analysis for Expanded polystyrene

SM, the raw material of EPS, its price increased very fast, because crude oil increased day by day. Benzene, naphtha and ethylene's price is also very strong. Besides, the storage level in China is lower than normal level. The consumption rate of SM is faster than the supply rate of SM. Players said the storage are on the decline. In future market, some players had to buy some cargo to cover the short sales which they did before. All these factors pushed SM price to a higher side and it is also on the rise. Players should be careful since current price is very higher already.
　　This week, the latest deal price of SM is $1540/mt CFR China for Oct shipment. This price is $50/mt higher than that of last week. In domestic market, the dealing price is at RMB11950/mt, which increased by RMB400/mt. Players feel SM would keep rising. It would reach the peak price of this year.
　　 　　For Expanded polystyrene manufacturers, they have to quote higher price again and again. Even though, they still face big cost pressure from the raw material. Domestic sales are very active. Most manufacturers have no stock pressure at all. In exporting side, business is a little slow because overseas buyers could not follow up the updated price very quickly.
　　This week, EPS suppliers' operating rate is about 80%. First class EPS suppliers offered at $1730-1760/mt FOB level which increased by $40-60/mt. In domestic side, price is about RMB 12,700-12,800/mt EXW for packaging EPS and RMB13,300-13,400/mt EXW for block flame retardant (FR) EPS resins, which is increased by RMB200/mt.
　　 　　Future anticipation: EPS price would be firmer in the near future. Maybe it would last till Oct.