29 October 2013 12:07 [Source: ICIS news]
LONDON (ICIS)--Prompt pricing in the European styrene market has seen a sharp upturn so far this week, sources said on Tuesday, with concerns about availability for the first week of November emerging.
After closing last week around the $1,600/tonne (€1,152/tonne) FOB (free on board) mark following a deal done at this level, November spot numbers have gradually pushed higher this week. Bids opened on Monday at $1,585/tonne but quickly moved higher to $1,620/tonne, and there was an unconfirmed deal heard at $1,625/tonne.
By this morning, prompt November deals were confirmed at $1,650/tonne and $1,655/tonne with some bullishness ahead of November nominations supporting the uptrend.
However, several traders all cited availability concerns for early November as the key catalyst for the upward movement, with some vessel delays for imported material.
“There is some tightness for 1-5 November,” explained one trader. “It feels like history repeating itself.”
With derivative demand not expected to see any major improvements in the fourth quarter, other sources, however, do not see the likelihood of a sustained upturn on styrene pricing next month.
($1 = €0.72)
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