INEOS NOVA targets €40/tonne for Europe Jan PS

21 December 2007 10:55  [Source: ICIS news]

LONDON (ICIS news)--INEOS NOVA will attempt to raise European polystyrene (PS) prices by €40/tonne ($57/tonne) in January, citing strong demand and the possibility of higher feedstock costs, the company said in a statement on Friday.

The supply-demand balance for PS was finely poised after significant plant closures in 2006, and margins for PS producers had improved in 2007 after several years of poor profitability.

“Demand growth is running at 3.5-4% this year, and the outlook is good for 2008,” said a major producer on Friday.

“With polypropylene firm, next year will be a good year for PS.”

Other producers were also considering hikes for January PS, while one major PS producer would wait for the January styrene monomer contract price to be settled before revealing plans for January PS.

One large buyer said on Friday that it would wait to see how the month panned out before settling.

“It is all hype so far. We are not discussing anything for January yet,” he said.

General purpose polystyrene (GPPS) net prices were trading just below €1,200/tonne FD (free delivered) NWE (northwest Europe), according to global chemical market intelligence service ICIS pricing.

($1 = €0.70)

By: Linda Naylor
+44 20 8652 3214

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