Negotiations on the October contract prices of polystyrene (PS) in Europe are continuing, sources told ICIS market.

Among the topics of discussion is the basis of the recent explosion and fire at a petrochemical complex in Ludwigshafen, BASF (Ludwigshafen, Germany) and how this incident will affect the PS prices in the European market.

Although market players do not see the real reasons for the growth of quotations of raw material – styrene – in November, much will depend on he market sentiment rather than on basic factors generally affecting the price trend.

Currently, the market took a wait and see attitude, waiting for how the situation will develop at the site in Ludwigshafen, while spot styrene prices have started to rise at the beginning of last week.

One of the customers said that for the European market substation will be quite bad, if styrene prices will rise in November. Then even no price volatility will not help.

In addition, market players said that imports clearly increased, mainly general-purpose polystyrene (PSS / M), but they come mainly in Italy and the Balkan region, rather than in the Nordic region.

In October, the demand has been relatively stable, and according to the expectations of the market, only slightly down. The following year, the market players do not expect significant changes in the scope of supply.

According to the price review ICIS-MRC, the players of the Russian market last week noted stabilization of the MSS / M market. Spot styrene deficit in Russia has led to higher prices of some producers PS previous week. At the same time the remains of the SS on the spot are estimated as high. Some trading companies and manufacturers still offer a discount to customers as intend to sell stocks.