The spread between European polystyrene prices for net contract and spot has widened to Eur110/mt Wednesday from Eur30/mt earlier in the month as spot prices plunged on the back of weak buy interest, S&P Global Platts data showed.
Polystyrene spot prices slipped on Wednesday, with the GPPS spot price assessed at Eur1,650/mt ($1,769/mt) FD NWE, down Eur50/mt ($54/mt).
However, the PS net contract price has tracked the Eur90/mt monthly increase in the March styrene contract price, seeing no decreases on a weekly basis.
Platts heard that contract deals were concluded for March and assessed the net contract price at Eur1,760/mt FD NWE Wednesday, up Eur80/mt on the month.
The fall in PS spot was due to waning buy interest in the market as buyers stayed on the sidelines, anticipating further declines in the price.
"Polymer customers are holding back as they expect falling styrene contract price in April and buy on a need-only basis," a seller source said.
Despite PS demand firming in March, uptake was slow due to higher stock levels at converters.
Buyers pre-bought product in February, anticipating a hike in March PS contract prices, a trader source said. "Lot of people are not buying," he added.
Sentiment has turned bearish among buyers in the PS market as signaled by the feedstock styrene monomer market and the Asian market.
The European styrene spot price was last assessed Wednesday at $1,341.50/mt FOB ARA, down $178.50/mt or 12% from March 1, tracking similar declines in Asia.
In Asia, the GPPS CFR China spot price has been on a downward trend in the past month, assessed at $1,360/mt Wednesday, down $290/mt from February 22 amid slow demand.
Although the arbitrage between Europe and Asia is open for polystyrene, a second trader source said that import volumes would be limited as European buyers will see how low European prices will go.
