Contract prices for polystyrene (PS) in Europe for October supplies decreased by an average of EUR95 per tonne on the background of falling prices of raw materials – benzene, ICIS reports with reference to market participants.

The price decrease revived the consumer interest in October, while in September many market players had to postpone orders or be satisfied with the minimum due to the high cost of raw materials. Demand improved in October, especially in western Europe, with the market now more balanced.

According to market players expectations, demand in November should also improve.

Styrolution still did not withdraw force majeure for PS and ABS shipments in Italy and Switzerland, announced on September 5. According to the players, transport problems in Europe have not yet been resolved.

As previously reported by the Market Report, on August 12, 2017, the railway tracks in Rastatt, Germany were seriously damaged due to the repair of the tunnel under them. Rail transport through Rastatt, Germany’s most important railway route, connecting the northern part of Europe with the southern part, was stopped.

Although the railway tunnel has already been repaired, it will take another month for the situation to return to normal. In addition, the structural shortage of drivers or trucks has already led to an increase in freight rates in some cases.

Last week, prices of PMSM / M in Europe were at the level of EUR2 230-2 355 per tonne, FD EU. When the prices of the UPS / M were in the range EUR2 330-2 455 per ton, FD EU.

According to the Price Review of ICIS-MRC, a wide range of cost of the MSS / M of Russian production is 96,000-105,000 rubles. per ton, CPT Moscow, including VAT. The cost of the material produced by Gazprom Neftekhim Salavat is near the lower limit of the range. The cost of the Nizhnekamsk material for a batch of 100-200 tons is in the region of 99,000-100,000 rubles. per ton, CPT Moscow, including VAT. UPS / M is traditionally an average of 3,000 rubles. per ton more expensive than general-purpose material.