Despite tight supply, European styrene prices drop US$19/tonne Sept. 6 to settle at US$1,410/tonne FOB ARA on concerns about economy
September 8, 2011
– A gloomy economic outlook continued to dampen the mood among European styrene buyers Sept. 6, as prices followed bids down to settle at US$1,410 per tonne free on board Amsterdam, Rotterdam, Antwerp, reflecting a $19/tonne drop from the previous day, Platts reported Sept. 7.
Early on Sept. 6, market sources told Platts that bids for September and October were overheard at $1,415/tonne compared with offers of $1,430/tonne FOB ARA.
Later in the day, the mood among buyers worsened and bids came in as low as $1,405/tonne—even dipping below $1,400/tonne for a period—before leveling off at $1,400/tonne in the afternoon. Suppliers countered with offers of $1,415/tonne.
On Sept. 7, benzene held fast as styrene monomer slipped with the benzene-styrene spread dropping to $285/tonne from Sept. 6’s close of $304/tonne, Platts reported.
Benzene reportedly settled at $1,125/tonne cost, insurance and freight ARA.
The fall in styrene prices comes despite tight supply, market players noted. Concerns about the broader economy are trumping market fundamentals, players added.
The primary source of this article is Platts, New York, New York, Sept. 7, 2011.