06 September 2013 09:57 [Source: ICB]
Forthcoming lock strike in Germany during September sees several players push delivery forward in a tight market
Prompt tightness has pushed European styrene spot prices up to record highs ahead of September barge contract negotiations, players said last week.
The upturn began late last month with a rallying for August, as bids reached $1,740/tonne. August deals were confirmed for the week ending August 23 at $1,730/tonne and $1,740/tonne.
Several traders noted that September could see renewed bullishness on pricing amid at least one production outage and better demand from downstream markets following the holiday season.
By Friday 23 August, however, the upturn was far more pronounced. A deal for September was done at $1,820/tonne, and this pushed bids for August and September as high as $1,840/tonne, although no further business was confirmed by the close of business that week.
"People have to have the product on 1 September, and today is the last day they can buy because of the nomination period," said one source on Friday.
The forthcoming lock strike in Germany during September has also seen several players push delivery forward in a tight market, which has added further upward pressure on pricing.
The last week of August opened with continued bullishness for prompt material following a prompt intertrade August deal done at $1,870/tonne.
BIDS BACK UP
While spot numbers for September had started to show signs of a decrease earlier in the week, with some backwardation for the second half of the month also emerging, by the close of business on 27 August several traders saw September bids back up at $1,840/tonne amid continued supply constraints.
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