15 November 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European polystyrene (PS) prices in November have generally settled €65-85/tonne ($88-115/tonne) lower than in October, reflecting lower feedstock costs and a seasonal decline in demand.
Some buyers, however, are continuing to negotiate and expect to settle November orders by the end of the month. Due to price volatility over recent months, buyers are less willing to be tied to monthly contracts and increasingly weighting a greater amount of business on a freely negotiated basis.
At the start of the month, producers sought to keep as much of November’s €85/tonne reduction in styrene monomer feedstock costs as they could to bolster weak margins. Nevertheless, producers were met with strong resistance from buyers, who also complained of weak margins and were subsequently able to negotiate larger reductions.
Most market participants say demand is currently low but in line with seasonal expectations.
As is seasonally expected, demand is anticipated to decline in December, as buyers look to carefully manage balance sheets and inventories ahead of the year end.
($1 = €0.74)
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