LONDON (ICIS)--European polystyrene (PS) players are slowly settling June contract prices, with initial settlements heard broadly in line with the June styrene monomer contract reduction of €45/tonne, sources said on Friday.
PS buyers and sellers have confirmed an initial average reduction of €40/tonne on PS contracts so far in June. Contract price reductions range from €35-45/tonne.
One buyer noted that it had negotiated a reduction of €60/tonne with one supplier, citing low demand as well as a potential pricing correction, but this was not considered to be representative of the wider market.
PS distributors and buyers generally indicated that demand in the month appears to be short of summer peak-season expectations, though a seller noted that demand is well above May. Most market sources agree that demand in May was weak.
Sellers indicated that June demand is good, but not great.
The seller cited pre-buying for July as one reason for higher demand in June, saying that some buyers are concerned about feedstock tightness and rising cost pressure resulting from an explosion at Shell’s joint-venture styrene monomer/propylene oxide plant (MSPO-2) at Moerdijk in the Netherlands, last week.