PS players voice firm Dec expectations in Europe
A plastic end product manufacturer in Italy reported hearing talks of a possible increase of €80/ton on December styrene contracts. Meanwhile, a distributor in Germany claimed that he heard talks of €100/ton increases on the new monomer contracts in line with the surging spot prices.
A sheet extruder in Austria commented, “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 €80/ton in December.”
Apart from that, pre-buying activities ahead of December might come to the forefront as buyers are expected to avoid further increases on derivatives. A manufacturer in Italy is mulling over whether to buy or wait this month. “However, we are likely to decide to purchase some material since the December outlook is bullish considering spot styrene prices,” added the buyer.
A distributor reported, “We expect some increases for December in line with the higher spot styrene prices; yet, December will be a shorter month due to the holidays, which will pave the way for limited market activities.”
A converter, on the other hand, thinks that the December outlook is uncertain amidst strong costs and slow demand. The converter added, “We expect low demand to keep possible hike attempts in check.”
Market talks are mainly centered on increases of up to €100/ton on the new styrene contracts in Europe. Accordingly, most of the players anticipate a bullish market for the near term and a European producer was reported to have informed customers that they are mulling over applying increases of up to €100/ton on their PS prices for December. However, there are some players who do not exclude the possibility of disappointing year-end demand keeping hike attempts in check.
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