Confusion over October styrene hits derivatives

04 October 2007 15:21  [Source: ICIS news]

LONDON (ICIS news)--Confusion over the October European styrene contract price would not be beneficial to styrene derivatives, said market sources.

 

They considered that EPS (expandable polystyrene) prices were likely to fall by as much as €40/tonne ($56/tonne) in October, due to low demand and the market perception that styrene prices were falling.

 

The settlement of two conflicting October styrene contracts did not send a clear signal to consumers of EPS, they said.

 

“We are very unhappy with the current state of the European styrene contract mechanism,” said a source at the major Finnish EPS producer, StyroChem.

 

StyroChem formerly part of Wincup, was sold off in June 2007 during the bankruptcy proceedings of US-based Radnor Holdings.

 

The company was bought by a Scandinavian-based venture capital firm Eqvitec, under an arrangement whereby the management of the company would also be offered ownership.

 

($1 = €0.71)

By: Barbara Ortner
+44 20 8652 3214

< previous article(VIDEO – ICIS news Americas Lunchtime Bulletin 29 Oct 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly