01 December 2010 12:30 [Source: ICIS news]
LONDON (ICIS)--Major producer Styron will target a €45/tonne ($58/tonne) increase for its polystyrene (PS) sales in December, a company source said on Wednesday, following the settlement of the first December barge styrene contract at a €38/tonne increase.
“We feel that the supply/demand dynamics are very strong,” said the source, and many PS players agreed.
“We might have no choice but to agree to increases, but I can’t see why styrene has increased so much when only days ago we were expecting rollover or even a decrease,” said a large buyer.
The first European December styrene barge contract settled at €1,085/tonne, up €38/tonne from November, the buyer and seller said on Wednesday.
Supply has been restricted in the European PS market following a series of permanent capacity closures which some producers felt had left the market in structural undersupply.
General purpose PS (GPPS) was trading at €,1320-1,350/tonne FD (free delivered) NWE (northwest ?xml:namespace>
PS volumes have fallen dramatically in the 2000s, with technological advances in some areas, like electronics, leading to less PS usage globally. It is used in extensively in the food packaging area and in the manufacture of household goods.
PS producers in
($1 = €0.77)
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