Demand for European general purpose polystyrene picked up this week as consumers scrambled for volumes prior to an anticipated price increase in December, S&P Global Platts heard.
Traders confirmed that business had stirred, a stark difference from a few weeks ago.
"[There have been] more and more enquiries," a trader source said, adding he had concluded several deals in the past week.
A second trader also said buyers had been more active in the market.
Several sources said demand had been healthier than typical for November.
December polystyrene prices are expected to increase, tracking gains in the styrene spot market through November.
The styrene spot price was last assessed Tuesday at $1,249/mt FOB ARA, up from $1,140/mt on November 1.
Sources in both the styrene and polystyrene markets anticipate the December styrene contract price will rise in double digits.
This will likely lead to hikes in polystyrene prices, sources said.
The bullish outlook has not been confined to December. Sources are anticipating strength to continue into Q1, 2018 with turnarounds expected in the European styrene industry, which had contributed to further buying.
PS import offers were heard, but it remained unclear if buyers would be willing to commit to volumes.
The first trader source said offers from Asia had been increasing this month and were no longer competitive.
Offers from Egypt were heard earlier in the month, but volumes from Egypt were since heard to have been exhausted.
In addition, a large European producer was heard to have shut production for planned maintenance, although exact details of the unit were not confirmed.
S&P Global Platts assessed the GPPS spot price at Eur1,295/mt ($1,522/mt) FD NWE last Wednesday.
GPPS spot price pegs for November and December ranged from Eur1,250/mt to above Eur1,300/mt this week.
