Volume: Average
Price: Higher
Spot Polystyrene prices continue to firm. Processor inventories seem to have dwindled and we received quite a few requests for spot loads this week. We are also finding upstream supplies to be limited as some resellers have opted to lessen their involvement in the Polsytyrene market. Perhaps they have taken the cue from producers who are also winding down some operations. There was an announcement this week from a merged producer entity that another plant will be permanently shuttered.
A lower supply base will help the remaining producers better line out their reactors and run at higher operating rates amongst fewer plants. A more balanced supply / demand equation will also help producers pass along costs by implementing proposed price increases. Benzene feedstocks, which are on a near term trend higher, are volatile and will likely remain this way for some time.
Price: Higher
Spot Polystyrene prices continue to firm. Processor inventories seem to have dwindled and we received quite a few requests for spot loads this week. We are also finding upstream supplies to be limited as some resellers have opted to lessen their involvement in the Polsytyrene market. Perhaps they have taken the cue from producers who are also winding down some operations. There was an announcement this week from a merged producer entity that another plant will be permanently shuttered.
A lower supply base will help the remaining producers better line out their reactors and run at higher operating rates amongst fewer plants. A more balanced supply / demand equation will also help producers pass along costs by implementing proposed price increases. Benzene feedstocks, which are on a near term trend higher, are volatile and will likely remain this way for some time.
