23 December 2010 15:32 [Source: ICIS news]
LONDON (ICIS)--Styron is to increase its prices in Europe, the Middle East and Africa (EMEA) for January polystyrene (PS), acrylonitrile-butadiene-styrene (ABS) and styrene acrylonitrile (SAN) by €130/tonne ($171/tonne), the company said in a statement on Thursday.
No comment was available from Styron, but another PS producer commented on the move.
“We are waiting to see what styrene does for January, but the [PS] market is hot and we expect styrene to increase by at least €100/tonne, so there will be no alternative but to go for such a hike,” the producer said.
Buyers had been faced with increases in recent months, based largely on increasing feedstock costs, and the pressure from upstream markets remained.
However, one large PS buyer felt that this latest target was going too far.
“I will wait to see what happens to styrene prices before accepting any increase for January,” the buyer said, adding that PS producers’ margins had increased in 2010.
The new styrene contract for January was not expected to be settled before the end of December, and not all players were convinced that it would increase by as much as €100/tonne.
The current barge styrene contract stands at €1,059-1,087/tonne FD (free delivered) NWE (northwest Europe), up by an average of €34/tonne from its November level.
General-purpose PS prices were trading at around €1,350-1,370/tonne FD NWE in December at smaller and medium-sized accounts.
ABS natural compounding grades were at €1,800-1,850/tonne FD NWE, while SAN compounding grades were at €1,770-1,780/tonne FD NWE.
($1 = €0.76)
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