LONDON (ICIS)--European expandable polystyrene players (EPS) generally expect that prices will roll over from July to August, on the back of a €2/tonne reduction in feedstock styrene monomer (SM) costs in the month, sources said on Friday.
August SM costs fell €2/tonne to €1,440/tonne.
Market players noted that market activity has been subdued this week, largely due to the European summer holidays. Activity is also expected to be limited through the rest of the month due to the holiday period, with plants and business closing across Europe.
“Too early for EPS prices. Everybody is still digesting the SM change,” a buyer said.
One seller said it is still formulating its August price ideas, expecting a firm target next week.
A buyer also said it is still digesting the SM settlement, expecting firmer August price ideas next week.
“SM down €2/tonne probably means that the target will be a rollover. Not the best of all seasons, but a rollover seems a reasonable outcome,” it said.
Sources generally expect prices to remain broadly stable in August, though demand is set to tail off as players go on holidays and activity slows.
“We're seeing things remaining fairly stable,” another buyer said.