European PS buyers consent to large hikes on possible further firming

January PS deals are wrapping up with increases of €100-110/ton in Europe in line with higher styrene settlements. PS buyers were sticking to the sidelines following two consecutive months of massive increases. However, expectations of further hikes for February pulled them back to the market to conclude deals recently as styrene contract prices are expected to post increases between €40/ton and €100/ton in February.

In Italy, a disposable manufacturer concluding January deals with €100-110/ton increases reported, “We only purchased GPPS as our HIPS consumption is limited. As for February, we expect further hikes of €50-60/ton on PS prices.”

A different manufacturer commented, “We prefer to source from the import market, where prices are relatively lower compared to the European prices. We are using our existing stocks for our production as demand for insulation panels is low due to the bad weather conditions. Meanwhile, PS prices are likely to increase by €70-80/ton in February.”

Another seller reported, “Styrene costs might increase by around €70-80/ton while butadiene contracts are likely to be as high as €1200/ton in February.”

Another manufacturer from Belgium postponed their next purchases to February as they have sufficient inventories. The buyer noted, “We are aware that we will have to pay higher prices. We expect further increases of €30-60/ton in the PS market.”

A distributor from Germany said that demand has recently improved on firmer expectations for February. “Styrene contracts might post €40-70/ton increases. Moreover, the premium HIPS carries over GPPS is at €90/ton, which might widen in the near term due to the higher butadiene costs,” added the seller.

According to weekly average prices on ChemOrbis Price Wizard, spot styrene prices hit 12 month-high to be reported at around €1210/ton on FOB NWE basis.

In Italy, PS ranges are reported at €1400-1500/ton for GPPS and at €1490-1590/ton for HIPS, while in Northwest Europe, GPPS prices stand at €1450-1500/ton and HIPS prices stand at €1540-1590/ton, all on local terms.