PS players in Italy changing opinions due to styrene

In Italy, some PS players who were watching the spot monomer prices were not so bullish about the May market outlook due to the earlier softening of styrene and benzene. Even some major producers had been anticipating a stable to slightly softer trend for May in the PS market as spot styrene prices came down to a level as low as 1,355 dollars/ton (FOB NWE) on April 19, 70 dollars/ton below April 1 levels. However, the spot styrene market has reversed direction since then and has been moving higher on the back of tight supplies. It was reported at 1,480 dollars/ton (FOB NWE) on April 26, posting a weekly increase of 125 dollars/ton, even surpassing the early April levels by 55 dollars/ton.
Having heard softer expectations for May only a week ago, PS players have been puzzled recently as they are now facing another round of increase talks in the spot market. A trader commented that he is not sure about the market outlook for next month as he heard both increases and decreases. Early in the week, a West European producer also noted that they were anticipating a decrease in the next styrene contract due to the falling spot monomer values of a couple of days ago. However, they are now expecting small hikes as the spot monomer markets has changed direction. They also believe that not only costs, but also tight supplies will continue to be supportive of firming prices next month. A buyer also reported that although there was some talk of decreases, he thinks that there will be further increases next month as spot styrene prices have been moving higher once again. (Source ChemOrbis)