EPS sellers apply divergent pricing for Oct in Europe
In the EPS market, some sellers who were standing close to the high end of the overall market ranges have had to apply decreases of up to €90/ton while the majority of the sellers are rolling over their prices or applying only small decreases of €20/ton on robust demand and limited availability.
In Italy, a buyer who purchased at rollovers to decreases of €20/ton and €90/ton from three different European suppliers said, “EPS supply is tight on the producers’ side. The first two suppliers, whose levels were standing on the low ends, applied rollovers to €20/ton decreases while the third producer, who was offering on the high ends last month, applied €90/ton decreases from their September ranges.”
The fact that overall availability is tight in Europe has given an upper hand to sellers in their quest for rollovers as they are being sold out. A buyer reported purchasing limited volumes this month as a South European producer is mostly absent from the market due to the ongoing supply issues since last month. He added, “We have contacted two suppliers and we got the impression that they received a great deal of orders; however, demand is outpacing their supply levels.”
The November styrene outlook calls for another round of massive falls in the face of the spot declines. However, some players think that EPS prices might defy lower styrene in November as it was the case this month.
Yet, an insulation maker who paid €20/ton decreases for West European material said, “Our suppliers’ quotas were tight. However, the logistics disruptions that caused delivery delays until mid-October due to the repair work of the rail line have now been solved. If EPS supply and deliveries improve, we expect the sharp falls in styrene to be reflected on the EPS market next month.”
So far this week, EPS prices are being traded within the range of €1520-1570/ton FD, 60 days.
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