Styrene Market Outlook in Asia

Demand for ABS and PS markets in Q3 affected by changes in oil prices and the weak position of the world economy. In China, after the devaluation of the renminbi and the weak index procurement demand for raw materials fell. For example, ABS and PS are used for the manufacture of air conditioners and refrigerators. However, their production fell by 5.2% and 3.6%, respectively.

Due to the loss of about 525 300 tonnes of supplies in the second half of the year, with a total production of 23.8 million tons / year, many factories were closed for repairs and upgrades. Repairs were scheduled for large enterprises in the Middle East, Taiwan, Japan and China in August and December. In 2014 the enterprises of the Middle East accounted for about 25.5% of the total Chinese imports, making it the second-largest supplier after South Korea, which supplied 38%. Taiwan and Japan delivers 12.7% each, according to Chinese customs data.

Looking ahead, many market players said they expect a weakening of the market of plastics in the fourth quarter of this year, due to the increased flow of raw materials of American origin in an attempt to clear the stocks of products at the end of the year. Reducing the demand for polymers is continuing, as is evident from the situation in the secondary markets – particularly polystyrene, which is mainly used in the construction sector during the traditional off-season in the winter