The upstream cost is bearish, and the European PS market has intensified its decline.
due to the upstream cost is bearish, the downward trend of the European PS market has intensified, and the monthly price drop has reached three digits again. In January, the abrasion degree of crude oil price was certainly not the same. The contract price of butadiene decreased by 100 euros/ton, and the contract price of styrene decreased by 290 euros/ton
the bearish energy market continued to affect the spot price of styrene. In the transaction on January 12, the Brent oil futures price was lower than USD 50/barrel. Compared with the previous week, the spot FOB quotation of styrene in northwest Europe decreased by 140 US dollars/ton, and fell below the 800 US dollars/ton mark on January 9. Therefore, PS buyers currently choose to stand on the sidelines. Although the current decline has been great compared with December, they believe that the price is likely to fall further
a manufacturer in southern Europe announced that it was concerned that the PS price in January, which should immediately make up for the profits of refrigeration materials, should be reduced by 170 euros/ton. The relevant source of the manufacturer said: "at present, the demand situation is good. The unit price has fallen by 290 euros/ton. We do not intend to reduce the price by so much, but the price may fall further slightly later, up to 200 euros/ton." In Italy, the initial quotation of PS spot in Western Europe decreased by 200 euros/ton. A dealer commented: "we haven't received any inquiry these days, because there are some rumors in the market that the price will fall further in February, so the buyer is still on the sidelines." Indeed, although the price drop has reached three figures, buyers are not eager to purchase new goods and believe that there is still room for decline in the PS market. A packaging manufacturer said: "we initially received the PS quotation in January, which was 200 euros/ton lower than that in December, but we intend to purchase when the decrease reaches at least 250 euros/ton. Due to the lower cost of butadiene, we hope to narrow the price difference between GPPS and hips as much as possible, but the manufacturer's hips quotation is still higher than GPPS by euro/ton."
in Western Europe, the decline of PS was similar, and there was no spot price higher than 1400 euros/ton in the market this week. A German dealer said that it lowered the price of PS by 200 euros/ton at the beginning of January, and did not rule out the possibility of further price reduction this month. The dealer commented: "the buyer insisted on watching because the crude oil price is still falling. We think the upstream market may still be bearish in the medium term." Another dealer from France said: "we have reduced the PS quotation by 200 euros/ton, but we still face difficulties in terms of trading volume. There are also a number of" small giants "with strong growth and high market share, such as Jinwei chemical and Jiqing chemical. In the coming weeks, the market will remain calm, as buyers want the price to fall by another 50 euros/ton. "
a German buyer said that the quotation announced by a PS manufacturer in Western Europe in January was 200 euros/ton lower than that in December, but he planned to further negotiate with it to obtain a larger price discount, because the upstream styrene market is very weak at present. A composite material manufacturer added: "at present, we choose to stand on the sidelines because PS prices may fall further in February and undergo cleaning and drying treatment. We will pay close attention to the upstream market to determine whether we need to purchase some goods in the second half of January, or whether we can delay to February."
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