European PS players expect up to 3-digit hikes for Sept
These expectations mainly stem from the shortness of styrene amid production outages in Europe, where players reported that Covestro’s force majeure on styrene supplies from its POSM unit in Maasvlakte, the Netherlands remains in place.
Although spot styrene prices have retreated slightly under the shadow of softer Asian markets and lower benzene prices in Europe, they still indicate increases compared to the beginning of August and players expect to see increases of up to €100/ton on September styrene contracts.
A compounder from Germany said, “PS sellers were adamant on their August offers and we had to pay increases of €20/ton on deals. We also heard about expectations to see strong increases in September given short styrene supplies amid ongoing production issues.”
Although some buyers were planning to pay mostly rollovers as the month wore on given weak demand during summer holidays, large hike expectations for September prompted some buyers to source their needs within this month in line with some players’ earlier anticipations.
Nevertheless, a buyer opposed, “We are not building any stocks and we think that buying interest did not show a remarkable pick-up despite current talks about strong September hikes.”
A distributor in Italy reported that his West European supplier mulls over applying sharp increases of €100/ton on PS due to higher spot styrene prices. He added, “Still, we are skeptical as demand is still quiet.”
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