PS hikes fail to spur demand in Europe
However, initial hike attempts of €65-75/ton for PS offers proved to be unworkable given buyers’ resistance while only partial increases were achievable in September deals. A distributor said, “The PS market is quiet in terms of trading activities and price hikes failed to generate demand.”
Last week, a German converter paid increases of only €50/ton and added, “Our regular West European supplier has already conceded to some discounts with respect to his initial hike announcements of €75/ton. However, we purchased limited volumes as our end product business is currently quiet.”
A converter in Italy also confirmed that he has not concluded any deals for September so far as his end product demand slowed down.
Converters are told to have sufficient stocks and they are not in a rush to purchase fresh cargoes due in part to their pre-buying activities in late August.
Plus, softer expectations for the medium-term in line with the globally softer styrene markets also kept buyers on the sidelines. Spot styrene prices continued to move south, which is drawing a bearish picture for the PS market in October, players argued. Growing supplies in Europe pushed spot styrene prices down by around $75/ton on average since mid-August, according to ChemOrbis Price Wizard.
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