European PS sellers withdraw June hikes, July outlook in discussion
According to data from ChemOrbis Price Wizard, spot styrene prices on an FOB ARA basis witnessed significant decreases of almost $200/ton when compared to early June.
In Italy, several players confirmed that June PS deals are being concluded with rollovers to €10/ton increases from May after the market failed to absorb initial hike requests from regional sellers. A distributor who concluded some June PS deals with rollovers from May commented, “We conceded to revise our prices downward in order to boost our sales amidst weaker demand. Buyers are refraining from building any extra stocks in June as they believe that prices could witness decreases in July.”
A converter reported that they purchased some June shipment PS materials for different European origins with rollovers from May. “We are expecting to see lower offer levels in July owing to the recent significant decreases in spot styrene costs,” he noted. Meanwhile, a second converter opined, “We believe that notable decreases of around €100-120/ton might be possible on PS deals in July as buyers retreated to the sidelines following the recent styrene plunge.”
Players operating in Northwest European countries shared similar reports this week. Sellers conceded to trim their initial hike requests given plunging styrene and concluded June deals with rollovers to increases of up to €25/ton when compared to May. Distributors in France reported that PS supplies were in line with the current state of demand even though there were some reports of strike-related delivery delays at the beginning of the week.
A distributor in the Netherlands reported that they concluded June deals for South European PS with increases of €25/ton from May after initially requesting larger increases. He noted, “Demand isn’t encouraging at all. Hence, we may need to concede to giving rollovers on June deals in the coming days.” Meanwhile, in Austria, a buyer commented, “We are expecting to see significant decreases of around €100/ton on PS prices in July unless spot styrene costs recover their recent sharp losses.”
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