19 July, 2018
In Europe, PS sellers had to apply larger decreases than initially announced €30-40/ton drops to improve their sales. According to players, the fact that demand remained below expectations amid ample supplies and lower styrene prices strengthened buyers’ hand in negotiations.
Europe’s styrene market has been tracking a mostly softening trend since mid-June, with the weekly average of spot prices recently reaching its lowest levels since the start of 2018, according to ChemOrbis Price Wizard.
This along with the sales pressure on sellers ahead of summer holidays has caused decreases of up to €70/ton in PS prices this week. A player said that PS prices in Europe have been back to May levels, erasing June gains.
According to data from ChemOrbis Price Index, the weekly average of spot GPPS prices on FD NWE basis has recently hit a two-month low while HIPS has retreated to its lowest levels not seen since around the end of May.
A sheet extruder in Italy reported that he was offered South European PS with €50/ton decreases from June. He said, “We skipped fresh purchases as we wait to see further reductions toward the end of the month.”
Several players concur on the fact that buyers are not willing to replenish stocks ahead of the upcoming summer holidays. Some of them noted, “As for August, we expect further decreases of €20-40/ton on unsupportive demand, although it will depend on the next monomer settlement.”