10 May, 2018
In Europe, ABS sellers had initially approached the market with rollovers from April, citing higher May butadiene settlement as the reason. However, some of them were seen conceding to discounts ranging between €10/ton and €30/ton on deals this week to lure buyers back to the market. Some sellers offering on the low ends of the price ranges were able to obtain rollovers, meanwhile.
Neither surging spot butadiene prices nor higher spot ACN values supported sellers’ stance. The fact that demand remained weak and supplies are comfortable pushed sellers to lower their offers despite the small drop of styrene.
A distributor in Italy reported, “We had to concede to special discounts in order to conclude deals as demand is quiet and our customers resisted initial rollover attempts. They claimed that they are able to find competitive prices for South Korean origins. It is hard to deplete stocks under these circumstances.”
On the other hand, sellers are hopeful about the second half of the month due to firmer expectations for June. They also assume that buyers’ stocks might be low as they were holding their purchases due to their bearish expectations.
A distributor from Germany reported, “Demand is calm as there is a bank holiday this week while supply is ample. Still, demand may improve in the latter part of May as we expect a change in the direction next month.”