02 October 2009 13:58 [Source: ICIS news]
LONDON (ICIS news)--BASF dropped its October polystyrene (PS) price by €30/tonne ($43/tonne) on Friday, immediately after the barge styrene contract settled down €45/tonne for the month, a company source said.
Net general purpose PS (GPPS) prices had been trading in the high €900s/tonne FD (free delivered) NWE (northwest ?xml:namespace>
Demand for PS in
The PS industry has been suffering from oversupply, even after 13% of installed capacity was brought down in 2006.
BASF has closed 25% of its PS capacity in
PS producers have been complaining of unsustainable margins for several years, pointing to the series of closures as proof that margins were unsustainable.
Producers expected to be able to expand the styrene-PS spread again in October after managing to expand it in September when styrene monomer fell by €84/tonne, and PS only by around €40/tonne.
PS producers managed to increase the spread between monomer and polymer by maintaining a strictly reduced production programme.
Demand had been dwindling in many sectors as technological advances left PS volumes weak. A couple of sellers reported August volumes at a record low in
PS producers in
($1 = €0.69)
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