16 May 2008 12:49 [Source: ICIS news]
LONDON (ICIS news)--A perceived wealth of spot styrene in Europe saw May bids fall by as much as $25/tonne in 24 hours to below the $1,500/tonne (€975/tonne) mark on Friday, leaving the market in contango, traders said.?xml:namespace>
Bids for May loading material were heard at $1,485-1,500/tonne FOB (free on board) ?xml:namespace>
The market had opened at $1,510-1,525/tonne FOB
A firm June bid was seen at $1,510/tonne FOB
Traders attributed the drop to weak end-use demand for products such as polystyrene (PS) and expandable polystyrene (EPS) combined with trading at near-record high values in a well-supplied market.
The fall was also of concern to producers, some of whom benchmark their monthly contracts on spot prices and upstream benzene, which was maintaining record high levels.
“Prices are decreasing,” said a source at one major styrene producer. “It’s a real issue to us that styrene prices are decreasing with benzene so high.”
($1 = €0.65)
For more on benzene and styrene visit ICIS chemical intelligence
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