Delta between PS and PP-PET prices hits all-time-high in Italy

In Italy, the PS market is expected to remain bullish moving into March as styrene monomer is under upwards pressure after posting triple digit hikes for the third month in a row. This might change buyers’ preferences as several PS buyers have started to consider switching to alternative polymers, namely homo PP and PET, which are not posting such large hikes even if they are showing some increases.

Data obtained from ChemOrbis Price Wizard shows that local HIPS prices have increased by €270-275/ton since the end of January while GPPS prices have also posted €255/ton increases. The cumulative increases posted since the beginning of 2016 are larger, meanwhile, respectively standing at more than €360/ton and €345/ton. Homo PP and PET prices, meanwhile, posted relatively smaller increases of €110-140/ton in the same timeframe.

Accordingly, the gap between homo PP and HIPS moved above €600/ton in February while the price difference between PP and GPPS is more than €500/ton, both hitting an all-time-high based on ChemOrbis Price Index.

A similar record was seen between PS and PET prices in Italy as current PET prices stand €630/ton below GPPS and €730/ton below HIPS, according to ChemOrbis Price Wizard.



A buyer complained, “PS sellers are seeking strong hikes during the last 3-4 months while other polymer markets are not tracking similar sharp hikes. We are buying on a hand to mouth basis as our end customers are barely accepting to pay increases. We are mulling over reducing our PS production in the near term to use other polymers, which are more competitively priced.”