20 November 2007 11:31 [Source: ICIS news]
“Demand is much stronger than anticipated and we have had maintenance outages at two of our polystyrene plants in October,” said polystyrene business director Pierre Minguet.
“This has left us with no option but to decline further orders for polystyrene for November delivery,” he added.
PS prices have slipped in November due to a fall in styrene but producers were still attempting to improve margins as the supply/demand balance was seen to be in their favour.
“We did not expand the margin when the styrene contract price was easing off, despite the fact that the supply-demand balance is tight overall,” Minguet added.
Dow announced a €50/tonne ($74/tonne) hike for PS in
However, buyers were still looking to reduce their November PS further this week. “We aim to reach a €30/tonne reduction from October,” said one large buyer.
Lower expectations were based on the reduction in November styrene contracts, which were settled at €980-1,036/tonne FD (free delivered) NWE (northwest
The European PS industry has shown significant signs of improvement since up to 13% of installed capacity was taken out, mostly during 2006.
General purpose PS spot prices were trading in the high €1,100s/tonne FD (free delivered) NWE (northwest Europe) mid-November range, according to global chemical market intelligence service ICIS pricing.
($1 = €0.68)
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