Styrene prices drop further in weak markets

09 July 2001 00:00  [Source: ICB]

There is no relief for styrene producers as the market fills with inter-trade deals and numbers continue to plummet. Deals were inked in at $400-410/tonne cif last week, compared to $470/tonne cif mid-June.

The lower numbers are due to the continuing liquidation of imported material, which is still to find a home.

Producers claim they are keeping out of the market. One leading player commented: 'We cannot work with these numbers.'

The slide in styrene spot prices and the signals arising from the preliminary settlement of the quarter three benzene contract at E310/tonne FD are likely to influence styrene contract talks heavily.

All signs are pointing at a significant cut in the European quarterly number, which currently stands at E700-725/tonne FD.

One producer said: 'The very slim margin of quarter two has to be protected and the settlement must result in a win-win situation for the buyers and the sellers.'

However, the outlook on quarter three is still clouded by the performance of the polystyrene sector. Lee Fagg, consultant with Tecnon Orbichem, said: 'We see no change in demand from derivatives during quarter three, and it is therefore going to be another difficult quarter for styrene.'

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