03 July 2012 09:32 [Source: ICIS news]
An initial agreement was made late on Monday evening between one seller and one buyer, and this was later followed by numerous other players in the market.
One supplier confirmed it had agreed to the figure with two different consumers, while a third later confirmed it would follow this settlement for July.
One buyer said: “I support the number, even if it is not low enough this month.”
Buyers had been pushing for a sizable triple-digit reduction to reflect the €68/tonne reduction for benzene this month and the €170/tonne reduction for the July ethylene number, as well as the ongoing slump in derivative demand.
The soaring benzene prices seen since May 2012 on the back of supply restrictions had also helped support the styrene market, and several consumers believed that a sharp correction for July was needed now the upstream momentum had begun to shift.
One trader also said that significant volumes of imports have been arriving into western Europe for July, both as monomer and as expandable polystyrene (EPS), which has added some further downward pressure on the market.
However, one major European supplier confirmed that it would not be supporting the number in July.
The contract price was agreed on a free delivered (FD) northwest Europe (NWE) basis.
($1 = €0.79)
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