The European general purpose polystyrene spot price increased this week on a more bullish outlook for styrene and firm demand, according to sources.
The GPPS spot price was assessed at Eur1,395/mt ($1,642.50/mt) FD NWE Wednesday, up Eur20 on the week.
In the feedstock styrene market, contract and spot prices diverged. The November styrene contract price fell Eur90 to Eur1,160/mt this month.
However, spot prices have increased, leading to the possibility of an increase in the December styrene contract price.
The styrene spot price was assessed at $1,202/mt FOB ARA Wednesday, down $9.50 on the day, but rising from $1,140/mt on November 1.
The GPPS spot price is tracking the styrene spot prices higher, according to sources.
Demand was also strong for GPPS. Buyers had held off purchases in October as they expected the styrene contract price to fall in November. This meant that converter stocks were low.
Spot trading was very limited in Europe in the second half of October.
A trader pegged prices above Eur1,300/mt this week, adding that there could be further increases for the rest of the month, depending on movements in spot styrene prices.