Market Analysis for EPS in last week

SM RMB price decreased some compared with last week. It is cold season and players only purchase on need basis. Some long-term contract cargos arrived in Chinese main port; it released some tightness of supply. But in USD price side, price is almost stable. Traders mentioned that current USD price is lower than RMB price, there is no bubble. They said current arrived cargos only could support current demand about 1 week, after 1-2 weeks cargos would be tight again. Too may shipments are delayed.
Most players are very cautious to buy; it is cold season of SM. According to experience of pasted 10 years, SM price would decrease in winter. But this year it is special, inventory level is too less since too many guys are too cautious.
Current RMB price is RMB12300-12400/mt EXW which decreased by RMB500/mt. USD price is about $1570-1580/mt CFR which decreased by $20/mt.

In line with SM’s market situation, EPS RMB price decreased some but USD price is stable. Suppliers’ operating rate still is in low end due to shortage of SM. Some suppliers run when SM arrives and shut down when they use out it. This week some SM arrives and suppliers operate higher, but they mentioned the cargos would be used out after 8-9days again.
Demand decreased some, especially in northern of China. Southern China’s demand is good since it is time to prepare gift of Christmas. Almost all EPS suppliers had no stock. Cargos can be sold out very easily.
EPS suppliers ‘ operating rate is about 50-60%. First class EPS  http://www.china-eps.net suppliers offered at $1800-1820/mt FOB level which is stable. In domestic side, price is about RMB 13,200-13,300/mt EXW for packaging EPS and RMB13,800-13,900/mt EXW for block flame retardant (FR) resins, which decrased by RMB200-300/mt.