Market Analysis for EPS in these two weeks

SM’s cost increased a lot. Benzene price kept increased and Ethylene price increased very fast also. More players realized that SM price would not drop in the near future. Most players started to purchase imported cargos, price increased from $1600 to $1700/mt CFR China in these two weeks. In domestic side, price increased from RMB12300 to current RMB12700/mt. SM supply kept tight and cost is very high. Most players feel SM price would not drop in the near future. Current RMB price is RMB12650-12700/mt EXW. USD price is about $1680-1700/mt CFR which decreased by $20/mt. EPS suppliers had to give higher price since SM increased too fast. Most suppliers have no stock pressure. Some of them felt lost a lot since the deal price of EPS is lower than their cost. Demand decreased some, especially in northern of China. EPS suppliers ‘ operating rate is about 40-50%. First class EPS suppliers offered at $1890-1910/mt FOB level.