European PS, ABS markets open 2022 with an uptrend

European PS, ABS markets open 2022 with an uptrend

The European spot polystyrene (PS) and acrylonitrile butadiene styrene (ABS) markets opened the new year with increased bids from manufacturers. The main factor driving the market is the increase in upstream costs. Previously, both PS and ABS prices fluctuated in tight ranges throughout November and December due to production glitches and a year-end lull.

Higher monomer contract prices support sellers

Although spot styrene prices in the region saw some drops in January, a triple digit increase in benzene settlements pushed new styrene contracts advance earlier this week. Accordingly, the major European PS manufacturers have approached the market with an increase of 150-175 EUR/ton from the previous month.

ABS producers followed suit, as the notable rally in the styrene contract mitigated the impact of the EUR 50/ton decline in the  butadiene contract  in the region. Accordingly, the initial ABS injection and extrusion quotes appeared with increases of 70-155 EUR/ton from different manufacturers. Meanwhile, a number of purchase ideas were launched with an increase of 60-80 EUR/ton.

A source from a regional producer confirmed that they had raised their quotes and said: “We raised prices in response to an increase in styrene, which we attribute to an increase in the cost of benzene. Spot and downstream styrene markets have been supported by supply constraints due to several plant shutdowns and force majeure circumstances, while regional energy shortages have further impacted to this context.”

Buyers have not returned after long holidays

In terms of demand, most consumers have yet to return to their desks after the year-end and bank holiday on January 6. One supplier commented: “Consumers with ready stock may be able to preferring to adopt a wait-and-see stance while post-Christmas orders remain poor so far. We anticipate seeing a clearer picture of the market next week.”

“We expect to get an increase of 120-140 EUR/ton from our regular suppliers,” said a PS finished product producer in Italy. However, we can skip the January purchase because we made the purchase last month. Everything will depend on the February outlook.” Buyers added that their end product demand has picked up recently.

Export quotes to neighboring Turkey also increased

The bullish trend in Europe is also reflected in Turkey. Month by month, market participants reported receiving PS quotes higher than EUR 140/ton, while initial ABS injection quotes increased by EUR 100/ton.

An agent for a European manufacturer reported: “We have just published a new quote and we have yet to receive a response from the customer. Overall, buying demand isn't strong, but we have limited PS volumes." However, some market participants believe that the initial ABS price could be cut by the end of the month.

Polystyrene is used in the electronics, home appliances, packaging, insulation, medical, and automotive industries. ABS is widely used in equipment housings, luggage, pipe fittings, main household goods and auto interior parts.

Note: HTML is not translated!
Hotline: +84 88 888 3428
Wechat: +84 88 888 3428 Nhắn tin Facebook Zalo: 088 888 3428