High impact polystyrene's premium in Europe to general purpose polystyrene on the spot market widened Eur25/mt ($28/mt) Wednesday to Eur115/mt amid greater competition in the GPPS market, according to sources.
The HIPS spot price was assessed at Eur1,390/mt FD NWE Wednesday, unchanged week on week as prices were supported by a firm feedstock styrene market.
However, the GPPS spot price declined Eur25/mt week on week to Eur1,275/mt, widening the gap between the two prices. On the contract market, the HIPS premium over GPPS was assessed steady on the week at Eur90/mt.
Industry sources said more competition in the GPPS market, especially in southern Europe where more import offers were quoted, had led to weaker GPPS prices.
"It is a very aggressive market [in Italy]," a source based in Italy said, adding traders were more active in Italy and were offering imported GPPS at competitive prices.
Imports generally arrive to the EU via Italy, the source said.
Other trader sources agreed that prices in Italy were at a Eur20-30/mt discount to the rest of Europe as import offers were far less prevalent elsewhere in Europe.
A second trader source said there was little import pressure in Northwest Europe.
The nature of import offers also differed in southern Europe, depending on the origin. An import offer from Saudi Arabia was heard quoted around Eur1,220-1,250/mt DDP Italy earlier this month, while an offer from South Korea was heard around Eur1,400/mt DDP Portugal.
Egypt, India and South Korea are the key suppliers to the EU, according to Eurostat data.
Some converters have previously said there were some restrictions in using imported product due to uncertainty in delivery times and the difference in specifications.
