European PS hits 6-month low, June expectations differ

In Europe, PS buyers managed to obtain decreases matching the styrene drop or beyond that for May amid slow demand and comfortable supplies. Following a four month of firming between December and March in the European PS market, buyers had skipped buying beyond their basic needs despite three-digit discounts in April due to their expectations to see further decreases in May.

The recent price cuts pushed prices to almost 6-month low as spot PS prices both in Italy and Northwest Europe currently stand at their lowest levels since late November 2017, according to weekly average data from ChemOrbis Price Index.



Some players argue that PS prices have no further room to go down and expectations for a seasonal uptick in June, stronger energy costs and firming trend in Asian PS markets might exert upward pressure on the market.

Nevertheless, others think that volatile spot styrene prices and the lack of supply issues will overshadow stronger crude and naphtha prices unless demand shows a real pick-up next month.

The outcome of the June styrene contracts will play the most crucial role in determining the future trend of PS, players concur. Spot styrene prices fell by around $40/ton on a weekly average since the end of April, data from ChemOrbis Price Wizard reveals.

The overall spot PS ranges in Italy were lastly reported at €1300-1400/ton for GPPS and at €1400-1500/ton for HIPS FD, 60 days. Prices in Northwest Europe were at €1350-1460/ton for GPPS and €1450-1560/ton for HIPS with the same terms.