LONDON (ICIS)--European expandable polystyrene (EPS) June contract prices have fallen on average by €30/tonne, following a €45/tonne drop in styrene monomer costs in the month, buyers and seller confirmed on Friday.
Sellers generally refrained on passing on the full cost reduction in light of good demand. June contract price reductions were heard to range from €20/tonne to €45/tonne.
One seller said demand in June appears to be good, but not spectacular. Another seller characterised June demand as quite good, saying June is seasonally a strong month in terms of demand. It expects demand in July and August to be weaker, due to the European summer holiday season.
Nevertheless, buyers painted a bleak picture of the European construction sector, saying demand is lower than expectations for the time of the year. A German buyer estimated that its volumes would be down 5% in 2014 compared with last year. Other buyers in northwest and eastern Europe also indicated that demand is weak and construction activity is low.