Volume: Average
Price: Steady
Spot Polystyrene prices were mostly steady this week, perhaps a little higher, again approaching $.80/lb for Prime HIPS, with GPPS just a couple cents behind. We have noticed offers beginning to accumulate at this higher level, which might signal some resistance to this run. Spot Benzene prices are currently trading in the $3.50/gal range and spot Styrene monomer around $.58-.60/lb. Forward Benzene prices are priced higher, but are currently not forecasted to reach the problematic $4/gal level in the foreseeable future. Polystyrene producers would like to move away from gaining solely cost-push price increases. The Polystyrene market is mature and few new applications are developed using the resin, but producers have initiated strategies to bring supply capacity down to demand.
Consolidation of Polystyrene producers and the shuttering of resin plants will help producers in 2008 to better gauge demand and then limit production to keep surplus supplies from developing, tipping the balance in their favor.
Price: Steady
Spot Polystyrene prices were mostly steady this week, perhaps a little higher, again approaching $.80/lb for Prime HIPS, with GPPS just a couple cents behind. We have noticed offers beginning to accumulate at this higher level, which might signal some resistance to this run. Spot Benzene prices are currently trading in the $3.50/gal range and spot Styrene monomer around $.58-.60/lb. Forward Benzene prices are priced higher, but are currently not forecasted to reach the problematic $4/gal level in the foreseeable future. Polystyrene producers would like to move away from gaining solely cost-push price increases. The Polystyrene market is mature and few new applications are developed using the resin, but producers have initiated strategies to bring supply capacity down to demand.
Consolidation of Polystyrene producers and the shuttering of resin plants will help producers in 2008 to better gauge demand and then limit production to keep surplus supplies from developing, tipping the balance in their favor.
