Cheaper imports exert pressure on European polystyrene contract prices

13-Aug-14

European general polystyrene August contract prices were under pressure in Europe as cheaper imports are making in-roads into the region, as per market sources reported by Platts. An East European producer claims to be seeing more imports, not only from Egypt's E Styrenics, but also from Russia, where Nizhnekamskneftekhim had recently started production from its new line. As a result, polystyrene deals were reported trading as low as Eur1450/mt FD for general purpose PS, the producer said. "Demand and price are down due to [this import] pressure," the producer said. One Northern European converter was surprised at the sub-Eur1500/mt trading bracket in the market. The buyer said that a Europe of two halves "might be the case, adding that in Italy, big price reductions are due to [cheaper] imports from E Styrenics. A Russian source said that cheaper supplies could have already made their way into Northwest Europe, following polystyrene capacity expansions this year. Nizhnekamskneftekhim began selling its polystyrene production out of Tatarstan to converters in the Northwest European spot market after adding new capacity, sources said in late June. The company began production out of its new 50,000 mt/year line, adding to its 200,000 mt/year PS plant in Tatarstan, in January.