European PS, ABS markets see 3-digit drops on Oct SM plunge

After the stable to slightly softer trend seen last month, styrenics markets across Europe witnessed sharp drops in October amid the plunge in the monthly styrene settlement. The styrene monomer contract, in fact, was agreed €202/ton lower compared to last month on the heels of the €119/ton cut in benzene costs as well as steep spot losses and weak demand in the region.

Initial PS offers mostly emerged with smaller drops compared to the styrene decline due to producers’ need to improve profitability, while the ABS market also saw three-digit drops given weak market conditions and lower raw materials.

PS producers try to put a cap on losses

The majority of suppliers announced their new PS prices with decreases mainly ranging between €150/ton and €170/ton, without reflecting the entire styrene drop to recoup their margin losses. Reductions matching the monomer cut, meanwhile, were reported only in a few cases.

Although some suppliers continued to report slow buying activities in the second week of the month, a few sellers affirmed that their order entry is not so bad thanks to the hefty reductions and low prices. Indeed, ChemOrbis data show that PS prices returned to the lowest levels since January 2024.

Another factor that may boost demand in October is the changing sentiment for November as some players started to talk about a potential change of direction. This is due to the fact that the October styrene drop was deemed too strong, while upward movements in crude oil and naphtha prices amid rising tension in the Middle East might have an impact on the next monomer settlement.

ABS sellers yield to the pressure from lower costs, weak fundamentals

ABS suppliers mostly started the month with reductions of €100-150/ton compared to last month, bearing weak demand, ample supplies and lower feedstock costs in mind. Meanwhile, only a few suppliers opted for double-digit reductions where the starting levels were deemed low. Prices hit year-to-date lows following October drops, the weekly average data on ChemOrbis Price Index showed.

According to sellers, the sharp price adjustments have had no impact on buying appetite so far as converters are still cautious with fresh purchases due to slow consumption in derivative markets. Automotive, furniture and white goods sectors remained under pressure from lower consumer spending and macroeconomic uncertainties.