EPS Theoretical Gross Profits Were Fairish in Q2
In Q2, the supply-demand imbalance was obvious due to the tight supply. Sellers showed strong intention to keep the offers firm. Entering June, the EPS enterprises kept the prices at highs, enlarging the price spread between the EPS and styrene. It was learnt that theoretical gross profits at EPS enterprises in Q2, 2020 were RMB 1,400-2,000/mt.
In April, the EPS market prices rebounded after decreased, and theoretical gross profits went down. At the beginning of this month, supported by the cost and commodity market, the EPS prices started to increase. However, in H2 June, the prices inched down somewhat.
In 2020, the EPS prices followed the price trend of the styrene. However, due to the tight supply in Q2, sellers showed strong intention to keep the offers firm, and the price spread was still at highs. In Q2, 2020, theoretical gross profits at EPS enterprises were around RMB 1,686/mt, up RMB 275/mt or 16.31% Q-O-Q, and up RMB 958/mt or 131.59% Y-O-Y.
