Monday, 08 March 2010 12:44
In the Italian PS market, although producers are seeking €50-55/ton increases for March gentlemen’s agreements and traders are asking for €40-50/ton increases for West European origins in the spot market, an official distributor of a Central European producer decided to ask for a smaller increase for March, noting that PS demand is still fragile and larger increases will not find acceptance in the market.
PS sellers are indeed finding support from the €42/ton higher styrene contract settlement for their price hike targets. Not only that, but also persistent tightness is cited another major reason for their quest for increases. While some producers and traders report no prompt availability, there are two maintenance shutdowns ahead planned in April at Dow and Ineos Nova. Accordingly, the availability concerns are expected to remain in place for some time.
However, the distributor offering a Central European origin is pointing to the frail end product markets and buyers’ inability to pay larger increases for another month. Raising his prices by only €20/ton over last month, the offers for Central European PS retain their competitive edge against the rest of the market. Central European GPPS and HIPS are respectively reported at €1170-1180/ton and €1200-1210/ton while sellers reported their West European offers this week at €1220-1255/ton for GPPS and €1300/ton for HIPS in the spot market.
Source : www.chemorbis.com
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