Non-European origins remain competitive in Europe’s PS market
Ineos Styrolution pioneered the bearish market by applying €80/ton decreases on both GPPS and HIPS, smaller than €110/ton decreases in monthly styrene contracts. Sellers in the distribution channel are seen applying larger decreases ranging from €90/ton to €110/ton to be able to conclude deals amidst thin demand, meanwhile.
These recent decreases in the local market followed the large increases of €190-200/ton in September deals. Not only limited supplies and higher styrene settlements but also logistical problems helped sellers to obtain these hikes last month, but then market activities slowed down in the light of widespread expectations calling for a downturn.
Nowadays, despite the visible decreases in local offers, non-European origins in the import market are standing well below the local ranges and they are being found appealing by buyers. Egyptian GPPS stands €30-80/ton below the low end of the local range at €1300-1350/ton DDP Italy, 60 days. Saudi GPPS is also offered at €1350/ton with the same terms. As for HIPS, Korean material was offered €60/ton lower when compared to the low end of the European origins at €1440/ton DDP, 60 days.
A disposable manufacturer in Italy said, “We received new prices with €90/ton decreases and our South European supplier has not revealed their prices yet. Still, we will purchase from the import market this month as it offers a competitive edge compared to European material. We think that PS prices have room to decrease further in November.”
Although Ineos Styrolution’s force majeure on its PS, ABS deliveries remain in place due to the ongoing delivery delays and the producer is rumored to have an unplanned PS shutdown at its Wingles site, France, overall PS supplies are considered balanced with demand and the downturn is expected to extend into November.
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