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European PS sellers aim for three-digit hikes amidst higher styrene settlement

by ChemOrbis Editorial Team -
  • 05/01/2017 (10:15)
The European PS market opened the year on a bullish note with sellers aiming for three digit hikes on their January offers following the higher monthly monomer contract settlement. The January styrene contract was agreed at €1300/ton ($1350/ton) FOB NWE, up €105/ton ($110/ton) from December on the back of the ongoing firming trend in spot styrene prices. According to weekly average prices on ChemOrbis Price Wizard, spot styrene costs in the region are currently hovering at the highest levels seen since late August 2015.

A source from Styrolution reported that the producer officially increased its PS offers by €125/ton for January, aiming for hikes larger than the contract gains in line with the stronger production costs.

A plastic end manufacturer operating in Italy reported their buy ideas with an increase of €105/ton from December, adding that they are still waiting to see suppliers’ official price announcements.

“The market is quiet this week in Italy given the holiday lull, hence we will begin discussing our new prices with our customers as of next week,” said a source from a West European producer who is yet to officially announce their new offers.

An agent offering on behalf of the same West European producer reported that their supplier is seeking €110/ton increase for PS in January in the contract market while the seller raised its offer by €90/ton in the spot market. “Some buyers already built stocks in December as they had expected increases for January. Market activities are slow now due to the holidays while more customers will be back to the market from next week after holidays,” commented the distributor.

On the buyers’ side, a converter opined that they do not want to pay increase amounts higher than the monomer contract. “In December, we purchased off grade material as prime quality prices were already too high,” said the converter.

Meanwhile, a trader also pointed out that there will be many styrene shutdowns in overseas markets in the first quarter of this year, which will impact the market trend in the upcoming period.
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