Dow targets €70/t Feb PS hike on weak margins, high feedstock

23 January 2009 16:03  [Source: ICIS news]

LONDON (ICIS news)--Dow will target a €70/tonne ($91/tonne) increase on its February polystyrene (PS) prices in Europe, the Middle East, Africa and India, the company said on Friday.

“Dow’s raw material and energy costs for polystyrene have steadily increased over the last weeks and the polystyrene margins are at unsustainably low levels,” said a statement.

PS prices have been tracking styrene prices steadily over the past months, and fell by €40/tonne in January after the only publicly-reported styrene contract fell by €47/tonne.

PS producers' margins have been weak for many months and the industry has been running at low rates to accommodate poor demand.

One other PS producer canvassed said that it would seek to increase prices if styrene rose in February, but that it would be very difficult to improve margin in the current weak situation.

Buyers intended to wait for the outcome of the next styrene contract before commenting on the move.

European PS producers include INEOS NOVA, Dow, BASF, Total Petrochemicals and Polimeri Europa.

($1 = €0.77)

For more on styrene and PS visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect 

By: Linda Naylor
+44 20 8652 3214

AddThis Social Bookmark Button

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