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.
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