PS outlook firm on higher styrene, reduced supply in Italy
Increases of around €50-70/ton are anticipated for the upcoming styrene contracts and players expect PS prices to recover their February losses. Looking at the spot market, styrene prices are up by €70/ton from early February levels to draw near the €1000/ton threshold while spot benzene prices are almost unchanged compared to the beginning of the month.
A distributor sold West European PS €20-30/ton below last month, commenting, “We couldn’t procure extra volumes as our supplier closed their orders in the second half of the month due to tight supply. Styrene contracts might settle up €50/ton for March.” Another distributor, who almost sold out his allocation with decreases of €30-40/ton, also confirmed that producers are not supplying additional cargoes for February. The seller expects to see higher PS prices next month in line with firmer styrene while he considers sharp changes to be unlikely given the demand situation.
Some buyers confirmed facing difficulty in finding availability, especially for GPPS, after some producers closed their order books and added that they could not find any Egyptian GPPS offers this month.
A converter reported making some purchases with decreases of €30/ton from last month and added that he expects PS prices to rise by €30-50/ton in March. Another converter reported, “We faced difficulty in procuring material in the second half of the month. Supply is short for GPPS and we could only procure a part of our orders for South European HIPS. Our supplier of Korean origins raised their PS prices from early February levels for his limited volumes. For March, we project increases of €50-70/ton.”
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