European PS hits year-to-date low on July drops
Producers cut prices by €30/ton for July
European PS producers have initially announced €30/ton decreases. A source from a producer reported, “We are not open to negotiate as we aim to recover our margins. However, the state of demand during the month will be an important factor to watch.”
“Prices might not fall further in August as they currently stand at very low levels. We will lower our production rates instead of giving further discounts,” a different producer source remarked.
Spot PS hits year-to-date low
The recent drops have pushed GPPS and HIPS prices both in Italy and Northwest Europe down to their lowest levels not seen since late January this year, according to the weekly average data from ChemOrbis Price Index.
Will buyers replenish stocks?
The majority of the buyers remained unresponsive to the large June drops as they were expecting additional price cuts in July. End product sales have been also performing slowly on the part of converters amid the disposable ban across the board as well as their earlier purchases.
A market participant opined, “Buyers should return to replenish their stocks as they have limited or skipped their purchases last month.”
Still, converters mull over shutting their plants amid the summer lull and they might not build stocks in the near term.
Sales pressure on the distribution channel
Traders were reported to have stock pressure due to the unsold stocks. Players think that they might be flexible with their pricing policies to deplete their stocks. Therefore, they believe further decreases might be achieved as the month wears on.
Buyers expect additional drops
According to buyers, seeing additional drops is a sure thing due to the inventory pressure. They do not expect a revival in demand as summer holidays are starting, moreover.
Buyers reported to have received PS offers with decreases of up to €50/ton.
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