02 November 2007 10:42 [Source: ICIS news]
LONDON (ICIS news)--Polystyrene (PS) players were still discussing the direction of November prices after the surprise styrene contract settlements put downward pressure on the market, sources said on Friday.
PS sources were generally waiting until next week before firming November PS, due to the unexpectedly low styrene settlements.The first November styrene contract was settled at €1,036/tonne ($1,501/tonne) FD (free delivered) NWE (northwest ?xml:namespace>
Several PS producers complained that the volume behind these contracts was minimal, and that they did not represent the costs of the industry, or the bulk of styrene business.
Many sources were on holiday during the latter part of this week and buyer reaction to these new settlements was difficult to gauge.
PS producers were not happy with the contracts, however, which would put more downward pressure on their own PS prices.
“This has changed the whole picture for November. We really need a third settlement,” said one major PS producer.
A couple of producers who were available for comment indicated that they would be still looking for a rollover for November PS. They admitted that they would probably face downward pressure from large buyers, based on lower styrene, however.
The October styrene contracts ranged between €1,005-1,060/tonne FD NWE barge.GPPS (general purpose PS) net prices were trading around €1,200/tonne FD NWE at the end of October, according to global chemical market intelligence service ICIS pricing, while gross prices were well above this.
PS producers in
($1 = €0.69)
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