European sellers of polystyrene and acrylonitrile-butadiene-styrene are not willing to pass on the full decrease in the July styrene contract price to July PS and ABS prices amid diverging buy-sell ideas, sources told S&P Global Platts this week.
July styrene barge and truck contract prices were settled at Eur1,055/mt ($1,169/mt), falling Eur125/mt ($139/mt) from June. Typically PS and ABS prices track decreases in styrene, the major feedstock for both products.
But sellers of PS and ABS said they will not pass on the full styrene monomer decrease to customers as they did not pass on the full increase in feedstock costs in June.
June styrene contract prices were settled at Eur1,180/mt, up Eur60/mt.
A PS seller said the fall in the GPPS contract price will “[not be] as much as monomer,” as buyers did not absorb the increase in the monomer in June.
Trinseo and Ineos Styrolution posted a Eur80-85/mt decline in their GPPS prices for July, significantly below the styrene monomer decrease.
A third PS seller said it will offer a maximum Eur100/mt drop in its contract price.
An ABS seller said it will only offer a Eur30/mt reduction in prices, below the full feedstock change.
The first PS seller said demand was good, with order books healthy, adding that he did not see a reason to reduce prices as much as styrene.
The ABS seller agreed, saying demand was firm, as converters had held off orders as they anticipated a decline in July prices.
But buy and sell ideas diverged this week as buyers said they will seek a Eur150/mt decrease in the PS price.
A second ABS seller said: “The first impression is that the market will not be happy with a decrease of just Eur30/mt,” pointing to diverging buy and sell ideas in the ABS market too.
Negotiations for July are ongoing.
Platts assessed the general purpose PS contract price at Eur1,295/mt ($1,435/mt) FD NWE Wednesday, down Eur100/mt from last week, and the ABS contract price at Eur1,490/mt ($1,651/mt) FD NWE Wednesday, down Eur30/mt from last week.
