Italian PS buyers: South European producer firm in Oct prices

Although many West European PS producers have stepped further back from their initial decrease targets of €30/ton conceding to decreases of €40-50/ton by the end of the negotiations for October gentlemen's agreements, buyers reported that a South European producer was adamant about not giving in to decreases of more than €35/ton.

A large sized buyer commented that he closed his October gentlemen's agreements with West European producers with an average decrease of €43/ton at €940/ton for GPPS and €990/ton for HIPS while he paid only €35/ton lower to a South European producer at €955/ton for GPPS and €1005/ton for HIPS. The offers of the South European producer were less competitive this month as the producer did not agree to lower prices, he commented.

A second buyer reported that he concluded his GPPS agreement with a West European producer paying €45/ton less than last month at €930/ton. As the South European producer is determined about not surrendering to decreases of more than €35/ton, he has not agreed to close the deal yet at €940-950/ton, he said.

A third buyer, who is in the process of pushing for €50/ton decreases from West European producers and obtaining €910-930/ton for GPPS and €960-980/ton for HIPS, received offers from the South European producer at €930-950/ton for GPPS and €980-1000/ton for HIPS with a €35/ton decrease. He noted that they do not consider these offers competitive since the producer remains firm on its offer.