Some players in the European polystyrene market (PS) set the initial June contract prices on average by EUR35 per tonne compared to the previous month, which is close to the June contract price increase of raw materials – styrene, ICIS sources told the market.

Meanwhile, negotiations on contract prices for the PS for June deliveries are still ongoing.

According to sources, demand for material in June is high due to seasonality, and also because of more competitive prices compared to the first quarter of this year.

Sources also said that orders are received actively partly because some processors still lack volume, and their reserves are low.

At present, demand is 10-15% higher than normal seasonal levels, and this leads to a low level of reserves, said one of the producers.

One of the buyers said that a good demand puts producers in a better position during negotiations on prices, because they can more easily achieve an increase in quotations.

The current price level of the PS makes it more competitive in comparison with polypropylene (PP), although some market sources have said that it is probably early to make such assumptions.

In the second week of June, general-purpose polystyrene (PSM / M) prices were in the range of EUR2,220-2,240 per tonne, FD Europe, and the prices of high-impact polystyrene (UPS / M) were EUR2,220-2,340 per tonne, FD Europe.

According to the Price Review of ICIS-MRC, new volumes of European polystyrene continue to arrive on the Russian market. The prices of the European PS in the domestic market of Russia are falling. Pressure on prices has had both a ruble exchange rate and lower export offerings, voiced in May.