13 June 2013 11:12 [Source: ICIS news]
LONDON (ICIS)--European styrene spot numbers have moved up this week, with industry stepping into the market, pushing June values above $1,700/tonne (€1,275/tonne), sources said on Thursday.
The domestic market has been supported by industry purchasing since the second half of May, with several key players active in the spot market amid the tail end of the turnaround season.
There were several industry players that were still ramping up production output ahead of June, and with benzene prices soaring in May, others had elected to sell their benzene stocks and purchase styrene as and when needed to cover their requirements.
This week opened with several deals done for June delivery at $1,695/tonne FOB (free on board) Rotterdam, with industry on the buy side. The market edged up as the week progressed, with another deal done at $1,705/tonne on Tuesday June 11 as offers climbed as high as $1,720/tonne.
By midweek, there was some resistance from buyers to move beyond the $1,700/tonne mark, as the domestic styrene market still faces some challenging fundamentals such as uncertain demand from key industries such as construction.
The market opened at $1,675-1,700/tonne but with industry actively bidding for June material this drove numbers upward. June traded twice at $1,720/tonne and later at $1,730/tonne.
There is talk that one industry player is facing production problems at one of its sites in Germany, but this was yet to be confirmed at the source.
($1 = €0.75)
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