Competitive PS source from Central Europe mulls €80 hike for April in Italy

29-Mar-10

PS offers from Central Europe are considered most competitive alternatives in the spot market through March, as sellers preferred to apply a smaller hike of €20/ton for regional offers in view of the persistently poor demand. As per Chemorbis, West European sources raised their prices by €40-50/ton in line with the €42/ton higher March styrene contract. An official distributor of a Central European producer concluded deals at €1170-1180/ton for GPPS and €1200-1210/ton for HIPS on FD North Italy, 90 days deferred payment this month. Much lower Central European offers were available at the low end of the ranges from different sources at levels as low as €1140-1160/ton for GPPS and €1170-1180/ton for HIPS. West European offers, however, stood at €1220-1250/ton for GPPS and €1270-1300/ton for HIPS during the month. Though the styrene contract awaits settlement for next month, additional price hike intentions are beginning to surface. Dow seeks €100/ton hikes for PS contracts while there are talks of €30-50/ton hikes for PS in the Italian spot market. Considering spot styrene has risen by $90/ton (€68/ton) over early March and ethylene contracts settled €20/ton higher, players see it as a high probability that April styrene contract will settle higher. A distributor of a Central European producer has also expressed sell ideas for April recently. Noting that their supplier is planning a €100/ton increase, they might lift their prices by €80/ton.