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)

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By: Linda Naylor
+44 20 8652 3214



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