Players on the European market of polystyrene (PS) agreed on the original contract price of the PS EUR230-260 per ton higher than the previous month, informed sources ICIS market.

Retail prices last week were at the level of EUR1 760-1 850 per ton for GPPS grades (MSS / M).

Increased styrene contract prices for February delivery was a shock, particularly for processors who have decided either completely shut down their production or reduce capacity utilization, because they are not able to move so quickly a rise in prices for finished products, said market sources.

In the current environment, they meet the minimum number of orders in the hope that prices will be reduced in the coming months, the source added.

The demand, in general, is in the early months at a low level, but it began to rise, as imported volumes are unlikely to come into the market.

According to the supplier, the volume of material in the market are quite good, but they are still below the usual level in this period of the year.

Customers in the packaging industry have sharply reduced their purchases, but demand for home appliances packaging sector is particularly high, said one of the producers.

One of the traders said that consumers are seeing that their reserves are reduced, began ordering material to comply with orders.

At the same time, several market sources have expressed concern that the styrene quotes in Europe will continue to grow also in March.

Meanwhile, in Asian styrene prices fell at the beginning of last week, but then again went up in conditions of high market volatility.

According to the price review ICIS-MRC, in February, the price of Russian SS increased after the increase of styrene prices in the domestic and foreign markets. Importers also noted a significant rise in European brands polystyrene. In this new volume of the European PS is not entered into the Russian market. This week the processors will begin to receive the new batch of polymer. A significant rise in prices is perceived, not all market players. Older polystyrene stocks from January to former prices are not already available on the market.