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Size of July decreases under discussion in Europe’s PS market

  • 11/07/2016 (05:08)
In Europe, PS sellers seem to be reluctant to reflect the full styrene decrease to their July prices at the beginning of the month. Initial PS prices emerged with up to three-digit reductions which still lag behind the notable decrease of €125/ton on the monthly styrene contract.

Styrolution implemented a decrease of €85/ton on their July offers following the styrene settlement while Trinseo elected to lower their new prices by €80/ton with respect to June, according to statements on the companies’ websites.

A converter operating in France reported receiving initial July prices with decreases of €85/ton from June. “We are expecting to obtain larger discounts of around €100-125/ton on our July contracts considering the hefty drop in styrene contracts as well as muted demand,” the buyer commented.

In the spot market, several distributors reported that they are mulling over issuing slightly larger decreases of around €100/ton on their July PS prices when compared to initial drops announced in the contract market. They cited disappointing demand and the notable styrene decrease as the main reason behind their lower sell ideas. However, buyers who were yet to start making price inquiries expressed their July buy ideas with even larger decreases of up to €150/ton.

In Belgium and Germany, different distributors revealed their July PS offers with €100/ton decreases from June. A seller opined, “European producers reduced their prices by around €80/ton while initial offers started to surface mostly with €100/ton drops in the spot market. However, we think that larger decreases up to around €120-150/ton might be obtainable later in the month.”

A converter reported receiving new spot PS offers with €100/ton decreases from last month, stating, “We are planning to skip our purchases this month as we already have high stocks.” Another buyer commented, “We won’t make any purchases beyond our immediate needs in July as demand from the food packaging sector witnessed a slight contraction when compared to the same period of last year.”

In the upstream market, spot styrene costs recorded a slight decrease of $5/ton on a week over week basis to be currently quoted at $1010/ton an FOB NWE basis.
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