INEOS NOVA targets Europe March PS increase of €60/tonne

25 February 2009 11:28  [Source: ICIS news]

LONDON (ICIS news)--INEOS NOVA intends to increase its polystyrene (PS) prices in Europe by €60/tonne from 1 March, the company said in a statement released on Wednesday.

“INEOS NOVA needs to restore an acceptable margin in its business following the margin loss in February and pass on the expected feedstock increase in March,” said the statement.

Other PS producers said they were also preparing price hikes for March based on increased feedstock costs and poor margins.

Spot styrene was traded at $739/tonne (€576/tonne) FOB (free on board) ARA (Amsterdam, Rotterdam, Antwerp) on Wednesday.

The February barge styrene contract stands at €615-620/tonne FD (free delivered) NWE (northwest Europe).

Sources speculated over an increase of up to €50/tonne for March contracts but some said it was too early to tell where new styrene contracts would land. 

PS prices rose by around €45/tonne in February, short of the €60-65/tonne hike in February styrene contracts.

General purpose PS (GPPS) was trading in the mid-€700s/tonne FD NWE at the end of February in the distribution sector.

Buyers in the food-packaging sector still reported healthy demand, but one described the new PS targeted hikes as “aspirational”.

February PS demand had been stronger than expected by most suppliers, but production was still cut back to accommodate a fundamental oversupply in the European PS market.

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

($1 = €0.78)

For more on polystyrene visit ICIS chemical intelligence
Read Paul Hodges’ Chemicals and the Economy blog
To discuss issues facing the chemical industry visit
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