Large hike requests for polystyrene in Italy as Jan styrene contract settles €172/ton higher

08-Jan-10

Post New Year Holidays, buyers are facing large hike requests for polystyrene in Italy as the January styrene contract settled €172/ton higher as per Chemorbis. A West European producer is seeking €180/ton increases for January gentlemen's agreements at €1130-1180/ton for GPPS and at €1180-1230/ton for HIPS FD North Italy, 60 days deferred payment. A large sized buyer also received offers for gentlemen's agreements from a different West European producer with €170/ton increases at €1100/ton for GPPS. He also reported that a South European producer started to offer €150/ton higher at €1085-1090/ton for GPPS with the same terms. December gentlemen's agreements had been closed at €920-1020/ton for GPPS and at €90-1070/ton for HIPS in Italy, representing increases of €25-40/ton. The spot market has also witnessed similar hikes in initial offers for January. A distributor has started to offer West European cargoes with €180/ton increases in line with their West European supplier at €1200-1220/ton for GPPS and €1250-1270/ton for HIPS FD North Italy, 90 days deferred payment. A buyer also commented that they think they will have to concede to paying increases of €150-170/ton this month to their West and Central European producers. Before the suspension of spot trading, pre-holiday, the spot market was pegged at €970-1040/ton for GPPS and at €980-1090/ton for HIPS. Buyers were already quite disappointed with the €20-30/ton increases they paid last month. The majority did not engage in pre-buying due to their slow end product business. This month, they are expected to keep their purchases to the bare minimum, feeling forced to consent to such large price hikes amidst surging costs and tight supplies.