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European players voice bullish expectations for Dec styrene contracts

  • 24/11/2016 (03:27)
In Europe, expectations for the December styrene contracts are centering on significant hikes from November due to stronger spot styrene costs in the region. Since the beginning of this month, spot styrene costs have moved higher by around $105-110/ton on an FOB ARA basis to be currently reported at around $1100/ton with the same terms, following the bullish trend in the Asian styrene market. Players mostly expect to see increases ranging between €50-100/ton on the new monomer settlement for December. However, some argue that slow demand and comfortable supply levels may limit possible increases in the expected monomer settlement for the upcoming month.

Last week, a sheet extruder in Austria said, “We initially had steady expectations for December; however, the upward pressure from the styrene market changed our expectations. We also heard that styrene contracts are expected to post an increase of around €80/ton in December.”

A trader based in Germany reported that demand is not that good; however styrene costs have posted notable increases in the last two weeks and they expected this to be reflected on the new monomer contract for December. “The December styrene contract may be agreed with an increase of €50-80/ton if spot styrene prices remain at the current levels,” added the trader.

“For December, we heard talks of €100/ton increases on styrene contracts due to the rising styrene spot prices,” said another trader who reported concluding some deals for November with an increase of €20/ton from October.

In Italy, a plastic end manufacturer commented that that they managed to conclude their November PS purchases with an €20/ton increase instead of the seller’s initial hike attempt of €40/ton. The converter also reported hearing talks of €80/ton increases for the awaited December settlements for styrene.

However, another manufacturer in Italy said, “Monomer costs are increasing, paving the way for additional hike requests on PS for December. However, demand will slow down in December due to upcoming holidays and it may keep hike amounts in check.”

Another manufacturer concluding some deals for PS for November with increases of €30/ton from October commented that inquiries from buyers are limited, while supply from the import market is good and competitive. Regarding December, he expects some increases due to higher spot styrene prices, but he added that December will see limited activity as it will be a short month in terms of working days.
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