13 July 2007 10:56 [Source: ICIS news]
LONDON (ICIS news)--NOVA Innovene has put a stop order on new sales of general purpose polystyrene (GPPS) for July due to a lack of product, a source at the European styrenic polymer producer reported on Friday.
“Demand is outstanding, much better than we could have expected. June was weaker, as converters expected lower PS prices due to the slump in styrene, but we see no sign of a summer slowdown at all,” he added.
GPPS was particularly tight after last year’s permanent closure of around 13% of European PS capacity. An upturn in demand also contributed to the strength of the PS market.
July’s PS prices have gone down by up to €40/tonne ($55/tonne) so far, although not all business has been settled and some PS buyers were aiming to recover more of the €70-80/tonne average drop in the July styrene contract.
“We will not go below a drop of €40/tonne for July,” said the Nova Innovene company source. “There is simply no need to.”
GPPS net prices were trading at €1,280-1,300/tonne FD (free delivered) NWE (northwest ?xml:namespace>
Nova Innovene, a joint venture of NOVA Chemicals and INEOS, operates five production sites in France, Germany, the Netherlands and Sweden.
Other European PS producers include BASF, Total Petrochemicals, Dow and Polimeri Europa.
($1 = €0.73)
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