On the European market of polystyrene (PS) last week began talks on February prices, but a three-digit increase in styrene contract prices this month potentially complicate the negotiation process told ICIS market buyers and sellers.

Market players were ready for the next increase in prices, but none of them could have imagined the magnitude of increase.

The pressure on the PS prices in Europe are likely to continue throughout the first quarter due to some problems in the US production of styrene.

Manufacturers are going in February to raise the price of PS EUR250-270 per ton, while the buyers expect an increase of quotations in the range of EUR220-250 per ton.

Demand is gradually increased and is already at a higher level in comparison with January, however, the volume of supply has not yet come to a normal market level until April, sources said market.

Currently, the record price levels and seasonality are not conducive to placing an order.

One of the customers said that producers would be difficult to get rid of the SS stocks in such circumstances, as many customers will try to switch to alternative materials.

He added that, if the producers want to sell their stocks, they should pay attention to the Turkish market.