13 August 2008 11:12 [Source: ICIS news]
LONDON (ICIS news)--Spot styrene values in Europe tumbled $40-60/tonne (€29-40/tonne) inside 24 hours as buying interest remained muted and perceptions of length pervaded, players said on Wednesday.
“There is no real need to buy August,” said a trader source. “It might come, but I’m not so sure.”
At 10:30 UK time, bid/offer indications for August loading spot styrene in Europe had fallen from $1,640-1,680/tonne FOB (free on board) Rotterdam in early trading on Tuesday to $1,580-1,640/tonne FOB Rotterdam .
Players attributed the dip to almost non-existent buying interest for August material and a wealth of supply on shipments arriving from the US, alongside tumbling energy complex and upstream benzene values.
The fall in values was part of an ongoing downturn in spot prices from record highs in the mid-to-high $1,800s/tonne in July.
September loading material remained at a discount to August, suggesting that players expected to see even greater supply in the coming weeks.
September loading material was valued at $1,540-1,580/tonne FOB ?xml:namespace>
“Producers will try to get a premium for prompt because they have it, and they see September so much lower,” said another trader source.
($1 = €0.67)
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