25 October 2013 17:37 [Source: ICIS news]
LONDON (ICIS)--The European polystyrene (PS) market has grown long this week in anticipation of a price drop in November, due to recent declines in feedstock styrene monomer spot prices, according to market sources on Friday.
The falling styrene spot price has pushed more PS buyers to the side-lines in anticipation of a lower styrene contract price in November, which is likely to be translated into a PS price reduction.
“This week is a bit calm, many customers are waiting for lower prices in November,” one northwest Europe producer said.
“[PS] it’s a margin business and depends on styrene,” another producer said, noting that volatility in pricing over the past few months has left its margins thin.
Despite anticipating a drop in the feedstock styrene monomer in November, producers will likely be seeking to protect their margins and are only likely to offer some of the styrene price drop to their PS customers.
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