MOSCOW (MRC) -- Demand for expandable polystyrene (EPS) had slumped in Ukraine by mid-December on the back of a seasonal drop in activity in the construction sector, according to MRC Price report.
Many traders and major EPS buyers reported falling sales of the material. After high November sales, demand had subsided substantially by the second week of December, market sources said. At the same time, market players' decreased activity was accompanied by traders' lower spot prices.
Offer prices of Russian EPS dropped by UAH400-500/tonne following SIBUR-Khimprom's lower prices for December and were heard at UAH21,900-22,200/tonne CPT Kiev, including VAT. Prices for European material were higher and were heard in the range of UAH22,800-24,000/tonne CPT Kiev, including VAT (depending on the brand). There were virtually no purchases of these grades in December because of a seasonal slowdown and higher prices.
Market players also said demand would almost totally subside in a week. The resumption of sales should be expected in the second half of January, after the New Year holidays, but EPS sales will be low until late February.
As reported earlier, the share of Russian EPS in the total consumption of the material in Ukraine increased significantly, despite the overall cuts in shipments to Ukraine. EPS imports from Russia grew in January-November 2013 by 7,000 tonnes year on year to 20,500 tonnes, thereby substantially displacing the Chinese and European suppliers.
MRC