European polystyrene converters were bracing themselves for price increases in September due to supply constraints on feedstock styrene monomer and an expected sharp increase in the September styrene contract price, sources said.
Styrene headed for sharp Sep CP increase
Spot styrene price at almost six-month high
Styrene tight on US hurricane, Gonfreville force majeure, maintenance
European PS spot prices climbed Eur55 ($65) this week to Eur1,350/mt FD NWE Wednesday. PS contract prices for August ended at Eur1,345/mt FD NWE, down Eur10 on the month. Converters expect polystyrene contract prices to rise in September because of a three-figure increase expected in the September styrene CP, which is seen settling Friday.
The 5-30 day price of styrene jumped $126.50 on the day to $1,488.50/mt FOB ARA Wednesday, its highest since early March, creating a bullish backdrop for the September styrene CP. The August styrene CP was settled at Eur1,170/mt FD NWE.
"Demand is healthy so PS producers will be firm with increases next month," a converter said.
Global styrene supply has been constrained by plants in the US Gulf region being shut or running at reduced rates due to Hurricane Harvey. Additionally, several European styrene plant turnarounds and catalyst changes are scheduled for September. Some market participants said they expected further supply complications ahead, citing potential delays to restarting styrene plants following catalyst changes.
Compounding all this is a styrene force majeure at Total's Gonfreville French styrene plant.
