Europe April EPS contracts settled €300-330/tonne higher

Truong Mellor

27-Apr-2015

LONDON (ICIS)–Contract settlements in the European expandable polystyrene (EPS) market have been confirmed at an increase of €300-330/tonne from the previous month, sources said late on Friday.

Packaging grade EPS was assessed at €1,725-1,790/tonne FD (free delivered) NWE (northwest Europe), while block grade was assessed at a slightly narrower range of €1,735-1,780/tonne FD (free delivered) NWE (northwest Europe). Flame retardant grade was at a slightly higher range of €1,745-1,820/tonne FD NWE.

The EPS market has been struggling to maintain pace with the upward movement on styrene since March, and this saw some contracts settled above the €300/tonne increase this month for the feedstock monomer.

There had been a steep backwardation in the styrene market throughout April, but this has gradually narrowed as Asian prices push higher and attract US Gulf export volumes. There is one styrene unit said to be coming back on stream before the end of the month, while others are not expected to be running until mid-May.

Combined with higher feedstock benzene costs for the upcoming month, many styrene players are now expecting minimal movement on the May barge settlement. Asian styrene prices have continued to move higher this week for forward delivery, which will ease any downward pressure on European numbers at least for the first half of May.

Demand for EPS has been healthy this month, and sources reported a strong outlook for May offtake already. With the summer months drawing closer, this should see a seasonal uptake in demand, but there is also a sense that pricing stability following the recent volatility would have a positive impact on styrenics sentiment.

READ MORE

Global News + ICIS Chemical Business (ICB)

See the full picture, with unlimited access to ICIS chemicals news across all markets and regions, plus ICB, the industry-leading magazine for the chemicals industry.

Contact us

Now, more than ever, dynamic insights are key to navigating complex, volatile commodity markets. Access to expert insights on the latest industry developments and tracking market changes are vital in making sustainable business decisions.

Want to learn about how we can work together to bring you actionable insight and support your business decisions?

Need Help?

Need Help?