December PS outlook bearish in West Europe
December butadiene contracts settled down €55/ton from November at €775/ton FD NWE. Regarding the upcoming styrene contracts, players are expecting to see three digit decreases given lower spot prices, pulled down by the plunging energy markets.
Spot styrene prices have slumped over $300/ton since the beginning of the month to hit the lowest level since August 2012. Spot benzene prices also remain below the $1000/ton threshold after posting decreases of around $240/ton from early November. The weakness in spot benzene and styrene prices was led by the plunging energy markets. Brent crude futures hit over a 4 year low on November 27 following OPEC’s decision to maintain their oil production.
A packaging producer in Germany settled his November gentlemen’s agreements with rollovers from last month. The buyer commented, “Our West European supplier informed us about possible decreases of €130-150/ton for the upcoming styrene contracts.” A converter in Austria obtained discounts of €10/ton on his November deals for HIPS and reported that he expects to see lower prices in December.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Muted demand in Europe paves way for plenty of PP, PE offers in Turkey
- Import PE uptrend persists in China despite bearish winds mounting in local market
- 3-digit hikes in Oct PVC offers reinforce supply-driven bullishness in Asia
- Crude oil caught between demand woes and production disruption
- Tightness drives European PVC market up, prices near pre-pandemic levels
- Major LDPE markets touch multi-year highs on growing tightness
- A prospect for Q4 through uncharted waters of 2020 amid pandemic
- China's import PP markets maintain uptrend under shadow of oil-driven losses in Dalian futures
- Weaker domestic demand prompts Vietnam to export polymers
- European PP market ceases upward trend in September